UK retailer Marks and Spencer today (6 November) revealed a near-10% drop in first-half profits as sales gains at its food business failed to offset a decline in general merchandise.
The company booked first-half pre tax profit of GBP290m (US$463.4m), down from GBP321m last year. Group sales in the period rose 0.9% to GBP4.7bn, as a 3.4% gain in food revenue was offset by a 2.5% drop in general merchandise. UK like-for-like sales were down 1.4% in the six month period.
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Commenting on the result, CEO Marc Bolland emphasised the company had been able to slow its UK like-for-like decline in the second quarter.
“We are pleased to report a better performance across the business in the second quarter. We took steps to address the short term merchandising issues in general merchandise and as a result, we delivered an improved performance. Food outperformed the market on a like-for-like basis,” Bolland said.
UK like-for-like sales were flat in the second quarter, compared to a 2.8% drop in the first quarter.
Bolland sounded an upbeat note going into the key Christmas trading period: “As we approach the all important Christmas period, we have better than ever Christmas products, to help our customers enjoy a special Christmas at home.”
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