Marks and Spencer suffered a double setback yesterday as analysts cut their sales forecasts for clothing at the retailer.
Analysts at Deutsche Bank and Credit Suisse reduced their forecasts for clothing sales in the three months to the end of September.
Shares in the high-street retailer dropped 13.7p, or 2.8%, to 480.3p after Simon Irwin, an analyst at Credit Suisse cut like-for-like sales forecasts for the second quarter from 0.5% to -1.5%. Deutsche Bank cut its forecast of M&S’s first half pre-tax profit by £15m to £281m.
According to the Financial Times, consumer research group Kantar recorded a further fall in the retailer’s share of the womenswear market in the 24 weeks to the end of August. M&S lost 0.6 percentage points of market share, compared with 0.7 percentage points in the previous month.
Last month the retailer divided opinion when it unveiled its new department store visual merchandising at the Pantheon store on London’s Oxford Street. The new store layout showcased greater brand and category segmentation, a serviced footwear section and a tighter edited approach to some of its high fashion items.