Analysts put boss on the back foot

The mood on the analysts' conference call was fractious - rebellion was in the air.

Sir Stuart Rose and his finance director Ian Dyson were doing their best to fend off the brickbats, but City retail watchers were not impressed with what M&S had to say today.

In apportioning blame for the company's woes, Sir Stuart argued they are 30% self-inflicted and 70% to do with the wider market.

The City isn't convinced. One analyst disputed the notion that a food price war is part of the problem. Sir Stuart served: "If nobody thinks there is a price war going on, then I am a Dutchman."

The analyst volleyed: "In that case I look forward to continuing this conversation in Flemish."

Philip Dorgan of Panmure Gordon argued that M&S must have known earlier than this that it was in trouble, and suggested it was late to come clean.

"I resent the statement," snapped Rose. "We are very responsible."

Here is more of what the analysts had to say:

John Stevenson, Shore Capital: "General merchandise was not a million miles away from where we expected it to be. However, there is a structural issue at food, particularly given the benefit of inflation and the performance of Waitrose.We think this is very much an M&S-specific issue."

Philip Dorgan, Panmure Gordon: "We said that the M&S trading statement would be poor. We were wrong. It is absolutely dreadful. We don't quite accept the argument that M&S is a strong business in a weak market. Food is around half of sales and represents a huge problem."

William Hobbs, Barclays: "Aside from the food, which looks to be down to M&S's position in the market as expensive top-up shop, we feel that this does look to be largely a market problem."

Richard Hunter, Hargreaves Lansdown:

"Perhaps in an effort to 'kitchen sink' the news, management have also issued a very cautious statement about nearer-term prospects, despite continuing to do what they can to improve operational efficiency."

Nick Bubb at Pali International: "It is very disappointing that clothing is doing even worse than food, so it seems a tad harsh that it's the managing director of the food division that has been sacked."