M&S has no time to revel in its glory as share price plummets

Citi retained its buy advice on M&S and said: “Self-help and property make this a very different investment proposition to the highly levered, leasehold businesses that dominate the quoted general retail space.”

Seymour Pierce shifted its stance from sell to hold and said: “Although we continue to have concerns about the positioning of the general merchandising ranges in a more difficult trading environment, results are likely to be bolstered by a solid performance from the food and international divisions.”

But Pali International urged sell and stuck to its 325p price target. The broker thought that M&S could fall to a similar rating to Next, as difficult trading and operational gearing prompt downgrades.

JJB Sports posted sales down 8.3 per cent in the 13 weeks to April 27, when like-for-likes fell 5.3 per cent. Comparable store sales dropped 6.5 per cent, but health clubs notched up a 5 per cent increase. Dresdner Kleinwort changed its advice from buy to hold because JJB’s shares have risen 14 per cent since the prelims, but “macro headwinds make it difficult to see further upside to the valuation short-term”.

Sports Direct has told the OFT that it will ensure shoppers are not misled in future by the use of closing-down promotions, after complaints that stores had not in fact shut or were closed only for a short time for refurbs. Broker Kaupthing said the abandonment of the tactic should not have a big impact on sales, “given the repositioning and new price architecture being adopted and strategic move away from such aggressive stock clearance”.

Fashion retailer French Connection said it was pleased with performance in the first 15 weeks of its financial year and that the brand had “performed well”, given the difficult trading conditions. UK like-for-likes were “broadly flat”. Ladieswear and the retailer’s Toast business both shone. North American like-for-likes were also flat, but promotions hit margin.

Home shopping group Findel posted preliminary pre-tax profits up from£16.4 million to£34 million on sales ahead 16 per cent to£634 million. Kaupthing said the market would respond well to a focus on existing, credit-worthy customers, debt reduction and improved communication, but “a re-rating will not happen overnight”.

Tesco is to buy tycoon Sir Tom Hunter’s minority stake in Dobbies and the garden centre group will be delisted from AIM. The deal will end the series of skirmishes between the two investors since Tesco took a controlling stake last year.