Marks and Spencer is looking for a successor to Sir Stuart Rose as chief executive. The Financial Times reports he may exit with sales on an upward trend.

Second-quarter like-for-like sales still fell 0.5 per cent year-on-year, but that was the best result for two years. The figures point to stabilisation; M&S is no longer underperforming its peers in clothing and only slightly in food. The gross margin is also forecast to decline by 50-100 basis points this year, compared with previous guidance of 125-175 basis points. That reflects better stock control and greater success than expected in offsetting the weaker pound by winning better terms from Asian suppliers.

Click Here: France Football Shop

M&S has suffered from more than just recession-hit consumers “trading down”. It got ranges and marketing wrong and continues to face structural pressures such as excess space in the clothing market.

All retailers, meanwhile, face the prospect of rising unemployment, taxes and, potentially, interest rates. That makes the 65 per cent increase in M&S shares so far this year look aggressive. Upgrades to profits forecasts, with the shares slightly down on Wednesday, will trim its current-year price/earnings ratio of 14 times. But any premium to Next, on 12 times despite its more sure-footed performance through the downturn, looks unwarranted.