M&S woes continue
The reaction from this morning’s Marks&Spencer’s sales figures has generally not been well received. Like for like sales in its crucial clothing department declined by 1.2%, although this was a welcome improvement from the previous quarters decline of 5.8%. As such the share price rose slightly on open at 8 a.m. However, since then the share price has been in steady decline, currently trading at 326p, down 3.5% today.
Investors are clearly disappointed in today’s figures and despite chief executive Steve Rowe’s assurances that they “remain on track”, we are seeing a lot more sellers in the stock than buyers this morning. The unexpected drop in sales for their sturdy food division could be one for the catalysts that has got traders spooked.
From a technical perspective the stock has found support around the 320p mark, and if that can hold over the next few days we may see some more buying interest in the near term. A break below would be quite bearish and I would imagine a test of key support at 307p very soon.
Jordan Hiscott, Chief Trader
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