The appointment of Steve Rowe as CEO will hopefully herald a new chapter for embattled high street juggernaut Marks and Spencer (MKS). But however things turn out in the long term, we think there is a short-term opportunity in the shares ahead of Mr Rowe's 'state of the nation' address at the time of May's full-year results announcement. What's more, we're inclined to agree with those City analysts that think the fourth quarter would need to be "disastrous" for the shares to lose much ground from current levels.
- New CEO
- Food growth ahead of market rate
- Discounted share rating
- Decent dividend yield
- Negative like-for-like sales
- GM turnaround necessary
There's still weakness across M&S's general merchandise (clothes and homewares) business and criticisms abound about the appeal of the retailer's clothes, stock flow and outdated stores. The catalogue of City gripes should mean Mr Rowe has plenty of opportunities to press investors' buttons in May when he sets out how he intends to revitalise performance. But news of Mr Rowe's appointment has already been well received, helped by the fact he's a 'lifer' with the company, having started as a Saturday boy more than 20 years ago.