Marks & Spencer has reported disappointing trading figures for the Christmas period, with like for like sales down 5.6 per cent compared to last year.
The retailer said annual pre-tax profits are now expected to be between £600 million and £625m. Analysts had been expecting a figure of between £625m to £716m.
The figures are expected to be a major blow to the retailer, which was hoping for a turnaround in its fortunes.
The news also puts further pressure of chief executive Stuart Rose, who defended M&S against Philip Green’s £9.1 billion takeover bid, with the promise to shareholders he would revive the company.
Analysts are now waiting to see if Green takes advantage of the situation, and the retailer’s drop in share price, to make a new offer.
Rose said: “You can’t judge the business recovery on this Christmas. This is something we had to digest, although it has cost a little bit more than I thought it would.”
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