Marks & Spencer fourth quarter: What the analysts say

“The issue of short stock in bestselling lines was a result of not buying deep enough in some key areas – partly due to top-down instructions, which resulted in reduced confidence from buyers to back trends.

“Management are looking to make ‘more process driven forward planning’ and steps have been taken to address this issue. The key areas that saw shortfall were knitwear and jackets. The problem was particularly seen in Autograph and overall sales were missed in better and best – this will have diluting impact on overall ASP.

“All in all it sounds like the issue is being addressed but nonetheless this is a bit of an operational own goal.”

Bethany Hocking, Investec

“Although there is a sales shortfall this is mainly due to availability in womenswear (fixable) and the withdrawal from technology. Cost savings more than offset the sales miss and guidance for full-year 2013 is better than we had factored in.”

Matthew McEachran, Investec

“Overall, fourth-quarter trading is slightly disappointing, with general merchandise and international sales performance falling behind expectations. Given the tough Easter comparatives, the first quarter of full-year 2013 is also likely to remain subdued.”

John Stevenson, Peel Hunt

“Given the benefit of early Mother’s Day/Easter trade in March and the fine weather last month, the expectationwas that M&S would have a decent final quarter with food over 2% up like-for-like and general merchandise a bit better than flat, so today’s outcome is clearly disappointing.”

Nick Bubb, independent analyst