M&S packs a punch as Christmas campaign begin – Daily Business

Lucy Punch: face of M&S advertising campaign (pic: BBC)

Marks & Spencer will unveil its Christmas plans this week after recruiting Lucy Punch, star of the sitcom Amandaland, as the face of its advertising campaign.

The campaign comes ahead of half-year results on Wednesday and Kate Calvert, head of retail and consumer research at Investec bank, forecasts pre-tax profits of £397 million, more than double the previous year’s £184m.

However, last year M&S was reeling from a serious cyber-attack that forced the suspension of its online and click-and-collect orders.

Calvert expects a 12.5% increase in food sales to £252m and a 20% jump in food, home and beauty sales to £197m.

M&S chief executive Stuart Machin has emphasised the focus on food, home and beauty, saying “the hard yards start here”. 

Management at fashion and home interiors group Next has already lowered second-half expectations, though analysts believe it could improve on guidance.

One of the best British summers on record helped Next grow full-price sales by nearly 8% in the first half and the UK high street is no longer where the opportunity lies for Next, say AJ Bell analysts.

Strong overseas online growth is being driven by localised digital marketing spending via its European distribution partnership with Zalando.

“The problem with success is that investors keep raising the bar and with the shares trading close to all-time highs amid an enviable track record of profit upgrades, there is no room for disappointment”.

Primark owner Associated British Foods will be hoping its decision to offer home delivery will boost the fashion chain’s subdued performance before its planned spin-off in 2027.

Home delivery could remove one of Primark’s biggest barriers to growth, but convenience comes at a cost. The test is whether Primark can add online sales without sacrificing the low prices and store economics that made the brand successful.

With full-year numbers largely in the rear-view mirror, the focus shifts to whether resilience elsewhere in the conglomerate’s portfolio will be sweet enough to offset expected deterioration in Sugar during 2027.

DIARY

Monday 2 November

In the US, quarterly earnings from Apple, Berkshire Hathaway.

Tuesday 3 November

Full-year results from Associated British Foods

Wednesday 4 November

Full-year results from Smiths News

Half-yearresults from Trainline

Third-quarter results from Smith & Nephew

Trading updates from Barratt Redrow, JD Wetherspoon, Marks & Spencer, Prudential

Thursday 5 November

Full-year results from Asos

Half-year results from Autotrader, National Grid, RS Group and Tate & Lyle,

Trading update from Next

Asos, Autotrader, BT Group, Croda International, Diageo, Harbour Energy, M&G,

Bank of England interest rate decision

US weekly jobless claims

Friday 6 November

Third-quarter earnings from IAG

UK Halifax house price index for October

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