Marks & Spencer struggles against weak clothing and homeware sales
Marks & Spencer has reported a 17.1% drop in pre-tax profit to £176.5 million in its half year after the company experienced weak clothing and homeware sales.
While food like-for-like sales increased by 0.9% in the six months to 28 September, clothing and homeware sales were down 5.5% following a range of buying and supply chain issues.
Revenue fell by 2.1% to £4.86 billion in the period.
The company is currently working its way through the first stage of its transformation plan. M&S chief executive Steve Rowe said the business has been making up for lost time in the clothing and homeware category and is clear on the issues that need fixing. Actions have included improving availability and making clearance periods shorter.
It also working to reshape it store estate and closed 17 full line stores in the half year.
Rowe added: “For the first time we are beginning to see the potential from the far reaching changes we are making. The food business is outperforming the market. Our deal to create a joint venture with Ocado is complete and plans to transition to the M&S range are on track.”
Photo by Georgia Hawkins