Risk-to-Price Commentary: Marks & Spencer PLC Apr 11

Standard & Poors, April 2011

Abstract
On April 6, Marks & Spencer (M&S)--the largest European retailer by sales in the U.K.--reported far better-than-expected fourth-quarter sales. M&S' largest market is the U.K., which accounted for about 90% of fiscal-year 2010 revenues, and over 80% of operating profit for that period. The company avoided the 2% to 4% decrease in sales in the fourth quarter widely flagged by some analysts and posted 0.1% increase in like-for-like sales. Instead, M&S was able to maintain strong sales despite an unusually cold December, with underlying sales up as much as 2.2%. Earnings were 14% or 4 pence higher at -0.33 than analysts' expectations as well, according to Capital IQ normalized earnings data. M&S shares advanced as much as 5% on the...

Companies mentioned in this report are: Marks & Spencer PLC,Kingfisher PLC,PPR S.A.,Next 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.

Marks & Spencer PLC,Kingfisher PLC,PPR S.A.,Next PLC

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