Marks & Spencer reports ‘unsatisfactory’ clothing and homewares performance
Marks & Spencer has reported a 1.9% increase in group sales in its fourth quarter although like-for-like clothing and home sales fell by 2.7%.
Sales in the company’s food business were flat but the business grew its market share through the opening of new stores.
While the sales decline in clothing and home was lower than in the first quarter and the proportion of sales on promotional discount was reduced, Marks & Spencer said the category’s performance was unsatisfactory.
Steve Rowe, Marks & Spencer’s chief executive, said: “We had a mixed performance in the final quarter of the year. Our food business once again outperformed the market by c.3.5% points. Although the sales decline in clothing and home was lower than last quarter, our performance remains unsatisfactory and there is still more we need to do.
“Turning around our clothing and home business by improving our customer offer is our number one priority. I will update you on my thoughts on the business in May.”
Marks & Spencer said an 8.2% increase in online sales and better customer satisfaction scores were driven by improved website speed and ease of navigation.
The company added that previously guided currency pressure and challenging trading conditions in its international business are expected to heavily impact the full year profitability despite improved sales in both the franchise and owned businesses.
