Mixed bag for M&S

 

Marks & Spencer, M&SBritish retailer Marks and Spencer has posted a 16 per cent gain in annual net profits buoyed by rising sales, despite a poor performance for clothing.

The group, involved in a big investment and rejuvenation program, did well with its food lines but the clothing sector struggled.

Earnings after taxation rose to STG524.8 million ($A957.93 million) in the 52 weeks to March 29, compared with STG453.5 million in the group’s previous financial year.

Total sales increased by 2.7 per cent to STG10.3 billion, M&S added in a results statement on Tuesday.

However, underlying profits before tax slid 3.9 per cent to STG623 million, hit partly by a drop in sales of general merchandise,  which includes clothing.

British sales grew 0.2 per cent with general merchandise down 1.4 per cent but food up 1.7 per cent.

“M&S grew sales by 2.7 per cent last year. We are focused on improving our performance in general merchandise and were pleased to see early signs of improvement,” said CEO Marc Bolland.

“Our food business had a very strong year, consistently outperforming the market.”

AFP

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