Last checked at 
(Alliance News) - Marks & Spencer Group on Friday said its Christmas trading was "robust" though a nationwide lockdown in England proved costly, causing revenue in its Clothing & Home unit to tumble more than 40% in November alone.
For the whole of the retailer's third quarter ended December 26, group revenue fell 8.4% yearly to GBP2.77 billion. In the UK arm alone, revenue fell 8.2% to GBP2.53 billion and was down 7.6% on a like-for-like basis.
By unit, it was a familiar story for the mid-cap retailer. The Food arm saw 2.2% annual third-quarter revenue growth to GBP1.74 billion. On a like-for-like basis, revenue in the unit rose 2.6%.
At the Clothing & Home arm, third-quarter revenue was down 25% year-on-year at GBP787 million, falling 24% like-for-like.
Before November's restrictions, revenue was down 17%, before tumbling 41% during England's lockdown that month.
In December alone, revenue at Clothing & Home was down 19%.
"Given the on-off restrictions and distortions in demand patterns our trading was robust over the Christmas period. More importantly beneath the Covid clouds, we saw a very strong performance from the Food business including Ocado Retail and a further acceleration of Clothing & Home online," Chief Executive Officer Steve Rowe said.
M&S noted that at the clothing arm's sales mix was "heavily biased" toward lines in leisurewear and sleepwear, products that have seen sales boosted by stay-at-home orders during the Covid-19 pandemic.
Shore Capital agreed with M&S that the trading update was "robust". The broker commented: "M&S beat our expectations for Q3 FY2021 trading in both C&H and Food categories, which is pleasing."
M&S shares were up 0.7% at 142.39 pence in early trading Friday.
Here is what you need to know at the London market open:
----------
MARKETS
----------
FTSE 100: up 0.3% at 6,880.45
----------
Hang Seng: up 1.1% at 27,861.76
Nikkei 225: closed up 2.4% at 28,139.03
DJIA: closed up 211.73 points, 0.7%, at 31,041.13
S&P 500: closed up 1.5% at 3,803.79
----------
GBP: up at USD1.3584 (USD1.3565)
EUR: down at USD1.2261 (USD1.2274)
Gold: down at USD1,909.53 per ounce (USD1,914.89)
Oil (Brent): up at USD54.86 a barrel (USD54.51)
(changes since previous London equities close)
----------
ECONOMICS AND GENERAL
----------
Friday's Key Economic Events still to come
0830 GMT UK Halifax House Price Index
1100 GMT Ireland retail sales
1100 CET EU unemployment
0830 EST US jobs report for December
1000 EST US monthly wholesale trade
1500 EST US consumer credit
----------
US President Donald Trump said he was "outraged by the violence, lawlessness and mayhem" after a group of his supporters stormed the Capitol and forced a halt to a Congressional joint sitting. The statement came as calls for his ouster grew on Thursday and members of his administration quit in the wake of a tumultuous 24 hours in Washington that also saw lawmakers finally confirm incoming president Joe Biden's election victory. Trump did not acknowledge his role in riling up his supporters with with baseless allegations of election fraud and encouraging them to march to the Capitol. He promised a smooth transition to president-elect Joe Biden, who defeated him in November's presidential election. However, in a message to his "wonderful supporters," Trump added "I know you are disappointed but I also want you to know that our incredible journey is only just beginning." The Democratic leaders in Congress, Nancy Pelosi and Chuck Schumer, demanded that Vice President Mike Pence remove Trump under the Constitution's 25th Amendment. The calls were echoed by a Republican governor, a Republican lawmaker and numerous House Democrats.
----------
A US Capitol Police officer has died of injuries sustained during clashes with a mob of Trump's supporters who overran a session of Congress, police said late Thursday. It was the first law enforcement death stemming from the violence at the Capitol on Wednesday which saw flag-waving crowds overwhelm police and break into the legislature. Four protesters died, including a woman who was shot by police. Three other deaths were reported on the Capitol grounds, but the circumstances remained unclear. Officer Brian Sicknick, a 12-year veteran of the force, was "responding to the riots on Wednesday, January 6, 2021, at the US Capitol and was injured while physically engaging with protesters," Capitol Police said in a statement.
----------
BROKER RATING CHANGES
----------
JPMORGAN RAISES TRAVIS PERKINS TO 'NEUTRAL' ('UNDERWEIGHT') - TARGET 1390 (1100) PENCE
----------
COMPANIES - FTSE 100
----------
Housebuilder Barratt Developments said its first-half performance was "excellent", though its sales rate has now moderated from previous highs, as the housebuilder expected. For the first half ended December 31, its sales rate climbed 12% to 0.77 net private reservations per active outlet per week. The housebuilder has been boosted by the stamp duty holiday and by the UK government sparing the housing sector from recent Covid-19 restrictions. Barratt's home completions rose 9.2% annually to 9,077 and total forward sales at December 31 were 14% higher year-on-year at 13,588 homes at a value of GBP3.21 billion, which up 19% from 12 months ago. "The board continues to recognise the importance of dividends to all shareholders. As announced at our full-year results, the board plans to implement a dividend policy based on a full-year dividend cover of 2.5 times. Subject to no material change in the operating environment, the board now expects to agree the resumption of dividends with the interim results on 4 February 2021," Barratt added.
----------
Rentokil Initial said its annual adjusted pretax before amortisation will be at the upper end of the GBP292 million to GBP337 million market forecast range. "Trading across both our Hygiene and Pest Control categories has continued to be strong in Q4 - primarily reflecting continued strong sales from one-off disinfection service," Rentokil said. The company on Friday unveiled another acquisition, it said it has bought Tampa, Florida-based residential pest control company Environmental Pest Service. EPS had annualised revenue of USD80 million in 2020, Rentokil said. For the whole of 2020, Rentokil forked out GBP180 million on acquisitions. The figure does not include the buy of EPS, whose price wasn't disclosed.
----------
COMPANIES - FTSE 250
----------
Animal products retailer Pets at Home updated on its third quarter, which ended December 31. In December alone, like-for-like revenue grew in the "high-teens". Promisingly, the company now expects annual pretax profit to be GBP77 million ahead of its previous guidance of GBP93.2 million, "including the previously announced repayment" of GBP28.9 million in business rates relief.
----------
COMPANIES - GLOBAL
----------
The Covid-19 vaccine from Pfizer and BioNTech protects against two new mutant variants that are causing rapid spread across the UK, according to new research. The pharmaceutical giant and researchers from the University of Texas carried out lab tests on the strains, one of which was found in the UK while the other originated in South Africa. The variants contain mutations including N501Y, an alteration in spike protein of the virus, which is a target for vaccines. In the new study, which has not yet been peer-reviewed, blood samples were taken from 20 people who received the Pfizer vaccine. Laboratory studies found that the samples had neutralising levels of antibodies which worked against the new strains. The third lockdown in England was in response to the rapid spread of the mutant strain found in the South East, which has now spread to other parts of the UK.
----------
Friday's Shareholder Meetings
Lekoil Ltd - EGM re Metallon resolutions
Cairn Energy PLC - GM re return of cash and share consolidation
----------
By Tom Waite; thomaslwaite@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
