Marks and Spencer Group (LON:MKS) Posts Earnings Results

Marks and Spencer Group (LON:MKS) released its quarterly earnings results on Wednesday. The retailer reported GBX 23.80 EPS for the quarter, Digital Look Earnings reports. Marks and Spencer Group had a net margin of 0.13% and a return on equity of 0.69%. The firm had revenue of GBX 1,727.36 billion during the quarter.

Here are the key takeaways from Marks and Spencer Group’s conference call:

• M&S said it is entering a new phase of “reinvesting for growth,” with capital spending set at GBP 650 million to GBP 750 million this year across stores, supply chain, and digital/technology.
• Food was the standout performer, with sales up 7% and market share rising to a record 4.1% (or 4.6% including Ocado), while management said the business has the potential to double sales over time.
• Fashion, home and beauty had a difficult year, with sales down 7.7% and operating margin falling to 5.5% from 11.3%, though management said performance improved in the fourth quarter as availability recovered.
• The company highlighted strong progress on cost control, saying its structural cost-out program has delivered about GBP 390 million of savings so far and remains on track to reach GBP 600 million by FY2028.
• Adjusted profit before tax fell to GBP 671.4 million and free cash flow from operations was GBP 131 million, with the cyber incident still weighing on the year, although M&S ended with a net funds position excluding lease liabilities and said profits grew in the second half.

Marks and Spencer Group Price Performance

Marks and Spencer Group stock opened at GBX 345.90 on Thursday. The stock has a market cap of £7.01 billion, a price-to-earnings ratio of 384.33, a price-to-earnings-growth ratio of 0.20 and a beta of 1.02. The company has a debt-to-equity ratio of 121.22, a current ratio of 0.81 and a quick ratio of 0.42. Marks and Spencer Group has a 1 year low of GBX 301.10 and a 1 year high of GBX 411.80. The firm has a 50-day moving average of GBX 342.76 and a two-hundred day moving average of GBX 352.59.

Analyst Ratings Changes

A number of equities analysts recently commented on MKS shares. Citigroup dropped their price target on shares of Marks and Spencer Group to GBX 430 and set a “buy” rating for the company in a research note on Thursday, March 19th. Shore Capital Group reaffirmed a “house stock” rating on shares of Marks and Spencer Group in a research note on Wednesday. Berenberg Bank lifted their price target on shares of Marks and Spencer Group from GBX 415 to GBX 480 and gave the stock a “buy” rating in a research note on Thursday. UBS Group reaffirmed a “buy” rating and set a GBX 425 price target on shares of Marks and Spencer Group in a research note on Monday. Finally, Jefferies Financial Group reissued a “buy” rating and issued a GBX 440 price objective on shares of Marks and Spencer Group in a research report on Tuesday, March 10th. Six analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of GBX 424.29.

About Marks and Spencer Group

M&S has a heritage of quality, innovation and value for money and has been voted the UK’s most trusted brand. From these foundations, M&S is reshaping for sustainable profitable growth and value creation.

We operate as a family of businesses, selling high-quality, great-value, own-brand products and services, alongside a carefully selected range of third-party brands. We do this through a network of stores and websites globally, and together, across our stores, support centres, warehouses and supply chain, our 65,000 colleagues serve over 30 million customers each year.