The high street stalwart may have posted news of record one day food sales and record one week online non-food sales in the run up to Christmas this morning, but investors have given a rather lukewarm reaction to the numbers. The market appears to be focusing on the impact of rising employment cost and other macroeconomic uncertainties, despite management noting there’s still plenty of room to deliver efficiencies in parts of the business where they aren’t subject to external influences. So regardless of claims that further progress can be made in the remainder of the year, the Marks and Spencer share price is as much as 6% lower in early trade.
More bad news from the high street with baker come fast-food business Greggs taking a beating off the back of their Q4 update which was published before the open. Again, investors appear to be taking the glass-half-empty view here as despite full year numbers remaining on track, the focus appears to very much on the rising costs the business will face next year, as well as how falling consumer confidence is cascading through to lower foot-fall levels around its stores, slowing growth. Management remain upbeat but the Greggs share price is down almost 10% in early trade, with the stock sitting around the bottom of the FTSE-250.
A Q3 trading update was also issued by B&M this morning, with the company reporting continued growth and cash generation being sufficient to allow the payment of a 15p per share special dividend. Further capital distribution is also expected once decisions have been made regarding re-domiciling the company although the London listing will be maintained. Management also tightened full year profit guidance, bringing down the upper end of that range by £10m and that appears to be the focal point of concern, with B&M shares trading down by more than 10% by 9am.
Most read news on Investegate this morning
Christmas Trading Results - - Marks & Spencer Group (MKS)
Tesco PLC Q3 & Christmas Trading Statement 2024/25 - - Tesco (TSCO)
Q4 Trading Update - - Greggs (GRG)
