MARKET TALK: Marks & Spencer 1Q Reveals Good Start - KBC

7th Jul 2010 07:38

0638 GMT [Dow Jones] Marks & Spencer's (MKS.LN) 1Q update reveals a good start to the new financial year, says KBC Peel Hunt. Notes like-for-like sales growth of 6% in general merchandise and 1.5% growth in food sales versus KBC's estimates of +3% and +1%, respectively. Says this is clearly a solid outcome for M&S, with market share gains in all areas of clothing. Still, KBC says its concerns for M&S stem from balance sheet constraints and lower levels of cash generation relative to its peers, such as Next (NXT.LN). Reiterates sell rating on M&S. Shares closed Tuesday at 353p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 07, 2010 02:38 ET (06:38 GMT)