UK retailer Marks & Spencer has met market expectations with its third quarter results, reporting an on-target increase in like-for-like revenue despite disappointing food sales.
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Like-for-like revenue increased by 5.6% during the 13 weeks to 30 December. Like-for-like sales rose 7.1% for general merchandise and 9.2% in clothing, but food sales increased by only 3.6%.
Reflecting the increasing importance of Internet shopping, M&S reported a 70% increase in online sales during the quarter.
The company did not report earnings figures for the period.
As part of its recovery effort, M&S said that its store refurbishment programme had progressed during the quarter. Thus far, it has refurbished 90 sites and plans to convert a further 19 stores during the fourth quarter.
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By GlobalData” In the fourth quarter, we come up against significantly tougher comparatives, whilst facing a more challenging retail environment. This quarter will be impacted by the next phase of our store modernisation programme, which starts earlier than last year. We plan to have over 70% of our store space in the new format by Christmas 2007,” chief executive Stuart Rose warned.
“We have now delivered growth on growth in all areas of our business, thus completing the first part of our recovery plan. We remain on track to further drive and broaden our business,” Rose concluded.
Marks & Spencer shares fell 2.07 percent to 710.5 pence (US$13.79) at time of press on the London Stock Exchange. M&S shares have more than doubled from their low point of 343 pence two years ago.
Marks & Spencer operates more than 500 retail outlets in the UK, in addition to 187 Simply Food outlets and franchises. The company has 232 stores outside its home market.
