All rise for M&S
UK sales for the 13 weeks to 1 April 2006 were +9.1% in total with general merchandise +9.9% and food +8.4%. Within this clothing was +8.5% and home +24.0%.
Full price sales of general merchandise were +11.6% compared with +5.3% ast quarter. The adjustment for the timing of Easter (March 2005 vs April 2006) ould have added around 0.8% to both general merchandise and food sales.
UK sales for the 52 weeks to 1 April 2006 were +3.4% in total with general erchandise level on the year and food +7.0%. Within this clothing was flat and home +0.8%.
Stuart Rose, Chief Executive said “We are pleased with the progress we are making but there remains much to do. The trading environment remains difficult and we do not expect this to improve in the next financial year. Progress will become more demanding as we start to come up against growth year on year.
Steve Davies, Analyst at Numis said” The real outperformance, though, has come in general merchandise, covering clothing and home. At a time when both of these markets have been weak, M&S has accelerated LFL growth from 0.8% in Q3 to 8.2% in Q4. This is a phenomenal performance and may partly explain why the likes of Next (Target price 1,340p) have reported such weak trading recently.”
