British department store chain Marks & Spencer (M&S) is expected to underwhelm with its latest trading update on Thursday.The FTSE 100 company is widely expected to post a decline of 1% in its clothing division in the first three months of the year, while sales within the Food division are forecast to be flat. The group has in recent times been saying its focus will be on continuing to transform the business into an "international, multi-channel" retailer.Back in early January, M&S said it expected its full-year gross margin in Food to be "slightly ahead" of its previous guidance of up 50 to 60 basis points (bps). As a result of its investment in promotional activity, it forecast its General Merchandise gross margin to be down 30 to 50bps, resulting in a "broadly level" UK gross margin compared to the previous year. It also stated that it was "cautious" in its outlook.Analysts at Brewin Dolphin on Monday said they believed the picture for both the General Merchandise and the Food divisions had "deteriorated". "In General Merchandise, market share data showed that M&S has underperformed the market, which is a sign that the Spring/Summer collection is not as successful as management had hoped. Food retail in the UK has seen a very tough two months, with a significant slowdown in sales growth. Whilst we believe M&S has outperformed the slowing market, like-for-like sales growth is likely to have decelerated. "The recent announcement that the company will focus on increasing international sales and profits (from a low base) is in our view an attempt to divert investors' attention from the domestic problems and management's recognition that growth will be very difficult to achieve in the UK." On Friday, Goldman Sachs retained its 'sell' recommendation for the group, saying that the business was not exempt from increasing competition in the UK grocery market. The group is due to release its annual results in May, when it is expected to report an 8% decline in profits to £615m. It will next month re-focus its online efforts in an effort to shake-off recent teething problems. NR