M&S shares slide on FTSE

Marks & Spencer received a cold blast from the City today after the company’s first sales growth in two years was overshadowed by worries over trading prospects.

The group’s 0.8% rise in like-for-like sales over the festive period was slightly below City expectations, although the company pointed out that the period excluded the first day of its sales.

M&S shares, which have risen 10% since the end of October, slid 5% or 19.5p to 385.4p by mid-morning as the retailer warned that trading will remain challenging this year.

The wider London market also retreated after recent gains, with the FTSE 100 Index down 16.3 points at 5506.6.

With the snow likely to keep shoppers away from the high street, a number of retailers were under pressure. Homebase and Argos owner Home Retail Group declined 2.5p to 287.4p, while B&Q firm Kingfisher dropped 2.7p to 230.7p and supermarket giant Tesco slipped 6.2p to 414.25p.

In the FTSE 250 Index, M&S food supplier Northern Foods tracked the retailer lower with a fall of 3.15p to 68.75p.

On the risers board, Royal Bank of Scotland maintained its recent strong run with a gain of 0.9p to 36.3p. With a recent broker upgrade boosting sentiment, Barclays added 1.9p to 301.5p although Lloyds Banking Group eased 0.2p to 53.8p.

There was some cheer in the retail sector after Domino’s Pizza UK & Ireland and Majestic Wine both delivered trading updates ahead of expectations.

The pizza delivery firm rose 2.5p to 312.5p after it reported an 8.6% rise in like-for-like sales and said it continued to open stores at a record rate.

Majestic Wine was 6% higher, up 12.5p at 227.5p, after it said a recent reduction in its minimum purchase policy had boosted Christmas sales.