Risk-to-Price Commentary: Marks & Spencer PLC Aug 10

Standard & Poors, August 2010

Abstract
The European retailing subsector's aggregated reported earnings over the past two years show two sharp dips, in first-quarter 2009 and first-quarter 2010 following peaks in the fourth quarter. This cyclicality may cause some concern about the solidity of recovery in the subsector (see chart 1). However, with an average standard deviation of reported quarterly earnings of 45.7% from first-quarter 2008 to first-quarter 2010, according to Capital IQ data, the subsector produced a volatility less than half that of the full consumer discretionary sector as a whole (92.2%). In addition, the subsector is on track to report aggregated earnings of $4.31 per share for second-quarter 2010, which would be a year-over-year increase of 47.6% from the $2.92 earnings recorded in second-quarter...

Companies mentioned in this report are:
- Beam Inc.
- McDonald's Corp.
- Marks & Spencer PLC
- LVMH Moet Hennessy Louis Vuitton S.A.
- GIE PSA Tresorerie
- Sodexo
- Compass Group PLC
- Next PLC
- ITV PLC
- ESCADA AG
- BSkyB Finance U.K. PLC
- TUI AG
- Arsenal Securities PLC
- Valeo S.A.
- Dixons Retail PLC
- Greene King Finance PLC

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

- Beam Inc.
- McDonald's Corp.
- Marks & Spencer PLC
- LVMH Moet Hennessy Louis Vuitton S.A.
- GIE PSA Tresorerie
- Sodexo
- Compass Group PLC
- Next PLC
- ITV PLC
- ESCADA AG
- BSkyB Finance U.K. PLC
- TUI AG
- Arsenal Securities PLC
- Valeo S.A.
- Dixons Retail PLC
- Greene King Finance PLC

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