M&S shares slump despite Xmas food sales beating expectations

The company said sales came in at £3.9bn. Food revenue in the 13 weeks to December 28 increased 8.9% and 1.9% for home, clothing and beauty against expectations on 7.8% and 0.7% respectively. Shares in the company were down 6% in early London trade.

“As we enter the new year, the outlook for economic growth, inflation and interest rates is uncertain and the business faces higher costs from well-documented increases in taxation,” said chief executive Stuart Machin.

“However there remain substantial opportunities and we are focused on what is within our control, as we reshape M&S for growth. Therefore, as indicated at the half year results in November, we are confident of making further progress in the remainder of the year.”

M&S said it recorded its biggest ever day of food trading on December 23, while clothing, home, beauty online recorded their biggest week. The retailer added 500 new product lines in its food departments, and meat, fresh fruit and veg and baked goods grew by double digits.

In clothing partywear sales increased on last year, while denim and knitwear also outperformed.

Reporting by Frank Prenesti for Sharecast.com