From the Financial Times just now
Marks and Spencer’s pre-tax profits fell by 64 per cent in the year to April 1, dragged down by restructuring costs, property impairments and lower clothing sales as the high street fixture turned away from a packed calendar of promotional events.
Profits before tax and exceptional items were down 11 per cent, slightly ahead of analyst expectations according to an average compiled by Bloomberg.
Britain’s biggest apparel retailer said its market share had “stabiised” and that it now accounted for a higher proportion of full-price sales than a year ago.
The popular food business, which focuses on high-margin prepared food and is popular with affluent and hurried shoppers, continued to exceed management expectations.
Chief executive Steve Rowe said:
As we anticipated, the planned restructuring of M&S has come with a cost and has impacted profits, but the business is still strongly cash generative and we reduced our net debt.
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.
Looks Marks and Spencer are building up the food side of the business at the expense of clothing. 