Shares tumble after sales slump

THE boss of Marks & Spencer denied his fightback plan was failing – despite yet another slump in sales. Beleaguered Steve Rowe admitted: “We have lots to do” – but claimed the store chain’s turnaround was on track. This was despite £370million being wiped off M&S’s stock market value yesterday after their shares tumbled. It came on the day dubbed Super Thursday as a raft of retailers revealed their results for late last year. M&S’s clothing and homeware sales fell 2.8 per cent in the 13 weeks to December 30, far worse than the 0.3 per cent drop in the previous six months, and despite a boost from online trade. Rowe blamed a warm October for denting demand for coats and jumpers. Sales rose in November and December. He also stressed M&S had ditched deep discounting and didn’t take part in Black Friday price cuts to protect profits.

Adding to Rowe’s woes were poor food sales, normally a money spinner for M&S at Christmas. They dropped 0.4 per cent, despite most grocers reporting a strong festive period.

Neil Wilson, markets analyst at ETX Capital, said: “This isn’t just any retail decline, this is an M&S one. There could be serious question marks over Steve Rowe’s turnaround strategy.”

Analyst Helal Miah, from The Share Centre, said: “Investors should be concerned.”

But top City watchers Moody’s backed M&S’s plans after maintaining their credit rating for the firm.

Other experts say new chairman, ex-Asda boss Archie Norman, will shake the business up.

Norman is one of several top appointments, with Jill McDonald coming from Halfords to run M&S’s clothing, and Humphrey Singer joining from Dixons Carphone to be their finance chief. HEAR’S THAT TOP Meghan with Harry