Marks & Spencer has recorded a third consecutive year of decline in full year profits, as a sweeping overhaul of the business takes its toll on sales in its clothing and food arms. M&S, often dubbed the bellwether of British retail, said that for the financial year ending March 31, it made a pre-tax profit before one off items of £523.2 million.
This compares to £580.9 million recorded last year and equates to a 9.9 per cent year-on-year drop. Despite this, the latest profit figures were slightly better than analysts’ average forecast of £519 million.
Meanwhile, M&S recorded a three per cent year-on-year decline in group revenues to £10.4 million. This included a 1.8 per cent decline in UK sales, with food like-for-like sales down by 2.3 per cent and clothing & home like-for-like sales down by 1.6 per cent.
The decline in like-for-likes in M&S’ two core departments were driven by a 0.6 per cent decline in total food sales and a 3.6 per cent drop in total clothing & home sales.
The heritage retailer is currently in the midst of a major transformation scheme, of which chief executive Steve Rowe said there were “green shoots”. However, he conceded that performance was not consistent and had been hit by its store closure programme, wide-ranging revamp plan, and the late timing of Easter.
