Member Article

Profits fall at Marks and Spencer

Marks and Spencer have posted a fall in profits as clothing and homeware sales suffer.

The retailer said profits had fallen from £321m last year to £290m, as overall Group sales were up 0.9% at £4.7bn.

Food sales were up 3.4%, as the company say new lines and refreshing of its lines consolidated its food business.

In a trading statement, the company said: “The market continued to be challenging through the first half of the financial year, with consumer confidence impacted by a weak macro-economic situation and continued pressure on disposable incomes.

“Trading was volatile, affected by unseasonable weather conditions over the summer months, including three of the wettest months on record in April, June and July. While the Jubilee and the Olympics improved the nation?s mood, they did not translate into higher sales.”

A series of refurbishments and the introduction of new store concepts, including Home and Beauty departments, as well as 19 new store openings were made throughout the half year.

Marc Bolland, Chief Executive, said: “We are pleased to report a better performance across the business in the second quarter. We took steps to address the short term merchandising issues in General Merchandise and as a result, we delivered an improved performance. Food outperformed the market on a like-for-like basis.

“Eighteen months in, we are making strong progress with our plan to transform M&S into an International Multi-channel retailer. Our new International stores are performing well, and our Multi-channel business is delivering strong growth.

“As we approach the all important Christmas period, we have better than ever Christmas products, to help our customers enjoy a special Christmas at home.”

This was posted in Bdaily's Members' News section by Tom Keighley .