Marks & Spencer still attractive for the contrarian investor

As Marks & Spencer updates the market, Sheridan Admans, investment research manager at The Share Centre, explains why he recommends the retailer as a ‘buy' for investors.
 
"As expected Marks & Spencer reported a fall in clothing sales this morning while food and international operations continued to perform well.
 
"The turnaround of its clothing operation is key to the chief executive keeping his job and we believe that it is tackling the problems in its women's wear and general merchandise operations. In response to investors, the chief executive has drawn a line in the sand with the expectation of delivering better performance by the autumn, as the retailer prepares to re-vitalise its clothing ranges.
 
"We recommend Marks & Spencer as a ‘buy' for investors who take a contrarian view on cyclical stocks and believe the management have a grasp of its problems. We believe the new management and its expected revamp is likely to bring in more positive changes from the retailer. Investors may be encouraged to see Marks & Spencer post the fastest quarterly sales growth in almost two years."