Retailer Marks and Spencer issued an unexpected profits warning on Wednesday as Sir Stuart Rose, its executive chairman, warned that Britain faces the most severe consumer downturn since the 1990s. The trading update, combined with the failure of Taylor Wimpey, the UK’s largest housebuilder, to secure new finance sent the pound lower and deepened the gloom in financial markets. M&S said that like-for-like sales had fallen 5.3% in the quarter to June – indicating the economic slowdown was spreading to the consumer sector. Its shares lost about 25% to close at 240p on the news. The two announcements came after profits warnings this week from Trinity Mirror, the newspaper group, and car retailers Lookers and Pendragon.

This entry was posted by Gwen Robinson on Thursday, July 3rd, 2008 at 5:45 and is filed under Capital markets. Tagged with Marks and Spencer, Taylor Wimpey. Edit this entry.