One of the main features will be a hefty rise in turnover. This has been deliberately engineered by the price-reduction campaign instituted by M&S last autumn. Until then, the group had refused to cut its profit margins, but a slight erosion in market share eventually prompted it to shave prices on the clothing side. Market share was duly restored with a vengeance, and profits have risen.
Although the food side continues to look lacklustre, there is every reason to assume from last year's performance that M&S will continue to impress. Because it is not a recovery stock, its shares have fallen out of favour with the stock market, but the market is wrong. The shares are a buy.Reuse content