UK retailer Marks and Spencer has booked another strong performance from its food business but general merchandise sales remained sluggish.
In an update this morning (9 January), M&S revealed a 1.8% increase in group sales for the third quarter to 28 December. Growth was propelled by the retailer’s food unit, where sales jumped 4.1% on the year. Like-for-like food sales rose 1.6%, the company revealed. However, these gains were partially offset by an ongoing decline in general merchandise revenues, which fell 1.1%.
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Commenting on the top-line performance, M&S CEO Marc Bolland said food delivered an “excellent quarter”. The company raised its margin guidance for its food unit, which it said would come in “slightly ahead” of previous expectations for an improvement of 50-60 basis points.
However, this gain is likely to be offset by weaker margins in general merchandise, which is facing a highly promotional environment.
