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Marks and Spencer H1

Marks and Spencer’s half year results show similar trends to Next’s results in the last quarter with like-for-like sales excluding food down 1.4% — food sales were down 0.3%.

As with many retailers, margins are a problem: the combination of a weak pound (making imports more expensive) and a lack of consumer confidence (putting pressure on gross margins).

In this context the near flat profits are an achievement and the Marks & Spencer seems better placed than it has done for many years. After today’s jump in the share price (up 5.8% to 360p so far today) is still on a prospective PE of under 14×. This is not outstandingly cheap, but might be worth considering as a recovery play.

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