Q3 clothing sales predicted to fall at Marks & Spencer

By

Cajsa Lykke Carlson

Published
Jan 4, 2016

A number of City analysts believe that British high street retailer Marks & Spencer will report a decline in clothing sales in the third quarter later this week, UK newspapers report.

Nomura, the Japanese bank, predicts a 5.5% fall in general merchandise sales at the retailer. This is the division that clothing falls under. The City expects general merchandise sales to be down by about 2%, while US bank Jefferies is predicting a 3% drop. The unusually warm weather in December is expected to have affected UK high street retailers adversely.

At least one aspect of M&S is doing well - the company's food division is expected to report flat-like-for-like sales for the period.

Next, Marks & Spencer's rival on the high street, which has overtaken M&S in terms of profitability, is also expected to have been a victim of the warm weather. Jefferies analysts cut their fourth-quarter sales growth estimates for the group from 7.6% to 4%.