Feeling a bit glum about this morning’s trading update from Marks & Spencer Group PLC (LON:MKS)?
Here are 10 reasons to be cheerful about M&S’s prospects.
- The Food business continues to outperform the market. Its market share increased by one-fifth of a percentage point (20 basis points) in the most recent 12-week period assessed by market research group Kantar World Panel
- The “Food to Order” - entertaining and gifting products - continued to perform well with sales up double digits, percentage-wise, year-on-year in the first half of the financial year
- M&S increased its Simply Food estate by 21 shops, and the performance of the new shops exceeded sales forecasts by 17%
- More food outlets are on the way, so Manchester United supporters will find it easier to get their prawn sandwiches and we’ll all be that little bit closer to a pumpkin-packed polenta ready meal
- M&S Bank has not been hacked
- The interim dividend was maintained, though hopes of a return of more cash in the second half of the financial year were dashed, as new boss Steve Rowe needs the money to invest in reinvigorating the core business
- The UK defined benefit pension scheme, which has been closed to new members since 2002, will be closed for future service accrual, as flagged in April. More than 99% of M&S employees have accepted the changes
- (Sir) Philip Green has recently showed no inclination to launch a bid for the company
- The board has realised what umpteen other successful UK retailers have acknowledged: it is very hard to export a successful retail format abroad. The M&S brand will live on overseas, but as a franchise operation. By the way, Primark-owner Associated British Foods also had results out today …
- Availability of its autumn collection of clothes was up eight percentage points year-on-year, and the company says it has made further improvements to core availability
If you do not like the above points, please return them to Proactive Investors and we will happily replace them.