M&S profits nosedive 63.9% as clothing and home sales dip

Multinational retailer Marks and Spencer Group plc saw its profits plummet 63.9% last year as revenue growth remained steady.

For the 12 months to April 1 2017, the London-headquartered firm reported a pre-tax profit of £176.4m in comparison to £488.8m the year previous.

Groupwide revenues for the period grew 0.6%, rising from £10.56bn to £10.62bn.

M&S attributed the dip in pre-tax profits to a previously forecast drop in clothing and home sales due to a reduction in promotions and markdown activity.

Increased costs associated with new space were also named as contributing factors, in addition to an investment in IT infrastructure across the firm’s UK business.

Net debt, meanwhile, was reduced by £204m during the period.

M&S chief exec Steve Rowe said: “Last year we outlined a comprehensive plan to build strong foundations for the future.

“We said we would recover and grow clothing and home, continue with our plans for food growth, remove costs and simplify the business.”

He continued: “We achieved a huge amount in the year and whilst there is still much to do, I am pleased with our progress and we remain on track.

“Looking ahead, we will continue our programme of self-help in a tough trading environment. We remain committed to delivering for our customers and shareholders as we build sustainable foundations for the future.”

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