According to city analysts Morgan Stanley this morning, Marks & Spencer Group Plc, Kesa Electricals Plc and DSG International Plc are the U.K. retailers “most likely to disappoint” this Christmas as earnings come under pressure from lower sales and increased discounting.
“Christmas is shaping up to be the worst in many years,” Morgan Stanley analysts led by Fred Bjelland wrote in a note today. “Worryingly, we believe that many retailers have entered the crucial Christmas selling period with too much stock.”
Comet owner Kesa Electricals, 1¾p down at 103¼p, and Dixons, Currys and PC World group DSG International, ¼p up at 13p. Morgan Stanley says those groups are most at risk because of their exposure to softer comparatives and big-ticket discretionary items such as electricals.