M&S shares plunge as Christmas trading disappoints

0 Comments | AFP, January, 2008

LONDON (AFP) — The value of British retailer Marks & Spencer collapsed by almost a fifth on Wednesday after the group reported weak sales in the crucial Christmas trading period and issued a gloomy outlook for 2008.

M&S shares dived 18.72 percent to close at 409.25 pence on London's falling FTSE 100 index of leading companies. That made the company worth 6.89 billion pounds (9.19 billion euros, 13.48 billion dollars).

M&S said Wednesday that sales on a like-for-like basis, which strips out the effect of new floor space, fell 2.2 percent in the third quarter of its current financial year. Analyst consensus forecasts had been for no change.

"Market conditions became more challenging through November and December," said chief executive Sir Stuart Rose, who was...