Morrisons share price tumbles as like-for-like sales growth dips
The UK’s fourth largest supermarket, Morrisons (LON:MRW), has moved to the top of the FTSE 100 fallers today following the release of the group’s first quarter interim statement showing an end to its strong sales growth.
Rob Hull
shareprices.com - Thursday, May 06, 2010
The announcement confirmed a like-for-like sales growth of 0.8 per cent – a long way off the six per cent end-of-year figure the group reported in January.
And with the report stating the firm was remaining ‘cautious’ about the economic environment and consumer spending, the share price has been hit fairly hard.
Shares have fallen to a new low for 2010 of 268p today, 3.87 per cent down and the steepest drop in price the group has suffered since 18 November last year.
Sales, excluding the fuel sector of the business, were up 5.9 per cent at Morrisons stores however, and the group claimed to have record numbers through the door in the period.
But Morrisons blamed a predicted slowdown in like-for-like sales on easing commodity prices and the virtual elimination of food inflation.
The statement said: “In a challenging environment for the consumer we have continued to invest for the benefit of our customers.
“We are satisfied with our sales performance, which has continued to outpace the market despite facing tough prior year comparative numbers.”
It was the first interim statement to be released with new CEO, Dalton Philips, in charge following the departure of Marc Bolland who was announced as the CEO of Marks & Spencer (LON:MKS) at the end of 2009.
Philips was described as ‘currently familiarising himself’ in the report which closed with the statement of caution for the rest of the year - something that's not likely to excite investors.
At 10:00BST the Morrisons share price is 274.10p, 4.70p or 1.69 per cent down.
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