Vulture funds target troubled M&S

Investors are betting on a disappointing Christmas at Marks & Spencer as vulture hedge funds close in.

the high Street retailer is being targeted by short-sellers hoping to profit from its struggles as it prepares to post a disappointing set of festive sales figures.

A total of 11.5pc of M& S’s shares have been snapped up by short-sellers betting on a further fall in its share price.

the shares have already fallen almost 19pc since the end of november amid warnings about the dire state of the retail sector.

Sports Direct tycoon Mike Ashley claimed that november was the worst on record for shops.

Analysts are preparing for M&S to slip out a profit warning alongside a trading statement on thursday which is predicted to reveal sales sliding up to 3pc.

the update is expected to be in contrast to those published by supermarket rivals tesco, Sainsbury’s and Asda.

James Anstead, a retail analyst at Barclays, said the supermarkets are likely to have benefited from the lack of weather disruption of a year ago. But critics said a major store closure programme at M&S means festive sales are likely to have been hit.

It is closing 100 stores to cut costs, and slashing prices.

george Salmon, equity analyst at hargreaves Lansdown, said: ‘that will inevitably mean total sales are lower this Christmas.’

Jefferies analysts said: ‘As the importance of online increases, M&S’s strategy to pursue less, but more profitable, clothing space is the appropriate one.’

M& S’s house broker Shore Capital has forecast a sales decline of up to 3pc at the clothing and home and food divisions. Some experts think more woe is coming. Bryan roberts, global insights director at Tcc global, told retail Week: ‘It remains tremendously inconsistent, with popular items hard to track down while stores remain awash with duff designs and colours.

‘It is telling that M&S has only this month launched its range of vegan items, languishing in the wake of the big four and others like Iceland and Waitrose.

‘even I, a devoted carnivore, twigged the plant-based trend ages ago: this is worryingly slow out of the blocks for M&S.’