Marks & Spencer disappoint​s markets

The FTSE 100 stumbled around the 6,100 level on Thursday as

the European markets fell well behind the American´s and Asian´s at the time of managing to duplicate the stronger gains seen overnight. The euro was flat ahead of Thursday’s European Central Bank policy meeting, where no action is expected.

Marks & Spencer (MKS.L) reported poor Christmas sales, as oppose to its peers trading in London Stocks Market and sending its shares down 3.5 percent to 357 pence.

The beloved British retailer announced its trading figures earlier than planned after they were leaked, reminded Citywire.co.uk.

The worse than expected performance showed group sales increased by 0.6 percent during the 13 weeks to the end of December, with UK like-for-like sales down 1.8 percent in what chief executive Marc Bolland described as a “challenging and highly promotional General Merchandise market”. Food sales threw some light upon such a gloomy prospect though, as they were quite strong.

“The statement makes clear that M&S Food has had another solid quarter,’ commented Geoff Ruddell of Morgan Stanley for Citywire. “However, sales in General Merchandise are very weak… A lot now rests on the performance of the new General Merchandise management team,” he added. Meanwhile, analysts at both Espirito Santo and Panmure Gordon cut their rating to ‘sell’ from ‘neutral’ in the first case, and their price target in the latter.

Across The Pond, Sears Holdings (SHLD) announced the resignation of CEO Lou D’Ambrosio, who has led the company for the past two years. During his term, Sears stock slid 46 percent, continuing its five consecutive years of declining revenue.

D’Ambrosio argued his premature departure on family reasons, but many analysts believe that he was forced out by hedge fund manager Eddie Lampert, who will succeed him as CEO, reported ‘Investor Guide’.