SHARE OF THE WEEK: Marks & Spencer shareholders await update

Marks & Spencer shareholders hope to leave 2022 behind when the retailer delivers its post-Christmas update on Thursday.

A year ago, M&S was crowned the country’s fastest-growing grocer during the holiday season, a huge step ahead of the turnaround under former boss Steve Rowe. It also saw an increase in sales of its clothing and home goods, driven by record-breaking lingerie sales.

But the tide quickly turned as utility bills spiraled, leaving the retailer grappling with a toxic combination of skyrocketing costs and cash-strapped customers. Shares took a beating, falling 45 percent over the course of the year.

M&S shareholders hope Rowe’s replacement, Stuart Machin, can revive the stock.

Markets were soothed on Thursday by a stellar Christmas performance from High Street bellwether Next.

Any signs that M&S’s clothing and home division can follow suit in dodging the worst impacts of the cost-of-living crisis will be a much-needed boost. Food sales are expected to show more resilience as families celebrating their first Covid-free Christmas splash out on the premium range.

Hargreaves Lansdown analyst Susannah Streeter said: ‘While M&S won’t be completely immune to the cost-of-living headwinds, it has a different proposition to the other major grocers, and the classic customer is unlikely to stop shopping in its stores just because of inflationary pressures.’