UK food and clothing retailer Marks and Spencer has reported higher full-year profits, but said it was not satisfied with its sales progress.
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The company reported underlying group profit before tax, excluding exceptional items, of £805m (US$1.45bn) for the year to 3 April, compared to £759.5m in the previous year. The latest financial year included an extra week. Adjusting the figures to represent a 52-week year, profit was £763.2m for the latest financial year.
Sales rose 3.8% to £7.3bn (up 1.9% to £7.2bn on a 52 week basis). Like-for-like sales slid 0.4%, although like-for-like food sales were up 1.6%.
“We have delivered financial performance which I would describe as ‘solid’ but clearly we are not satisfied with our sales progress. The market share gains that we had hoped to achieve were not delivered,” said chairman Luc Vandevelde.
Chief executive Roger Holmes said the company had held market share in its food operations, benefiting from the roll-out of its Simply Food stores, although like-for-like progress declined in the second half.
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By GlobalData“In Food we will develop our appeal and reduce reasons for customers to visit elsewhere by delivering our existing plans for Simply Food and continue to renew at least 30% of our food range during the year, particularly for special events. We will also highlight the unique qualities of our offer through more effective communication and a clearer promotional programme,” Holmes added.
The company opened 49 food stores during the year, of which 40 are Simply Food stores, 10 in partnership with Compass.
