As the high street bellwether prepares to unveil full-year results in a fortnight’s time, Credit Suisse issued a bearish note.
Credit Suisse analyst Tony Shiret cut forecasts for this year, next year and 2010 and said that the way directors’ bonuses are awarded is too weighted towards short-term profitability rather than M&S’s long-term interests.
The broker said: “We feel that a lot of the issues facing investors have arisen because chief executive Sir Stuart Rose has not been effectively challenged on his strategic decisions.”
On that basis, Credit Suisse argued that – among other measures – M&S should halt its share buyback scheme and review international development plans.
Shiret expects M&S to post pre-tax profits of£992.7 million on May 20, although some brokers believe the retailer could break the£1 billion barrier.
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