Marks & Spencer profits up, but nonfood sales fall
Profit before tax and one-off items, the figure most closely tracked by the market, fell 9% to GBP287.3 million, the company said Tuesday.
Net profit rose nearly 13% to GBP249.6 million from GBP220 million last year when the company reported a lower tax charge. Sales rose to GBP4.88 billion from GBP4.70 billion largely thanks to good growth in its food division.
Marks and Spencer is in the midst of an expensive turnaround plan that it hopes will help reverse the declining fortunes of its clothing and homewares lines. It has also invested heavily in store staffing and has incurred duplicative costs as it opens up a new distribution center. Costs will come down to more normal levels next year, it said.
Sales in general merchandise in the second quarter fell 1.3% on a like-for-like basis, a slight improvement on the 1.6% decline in the first quarter, and reflecting three weeks of the company's new Autumn winter collection under design director Belinda Earl.
Once again, the company's food business grew strongly, rising 3.2% in the second quarter, up from 1.8% in the first quarter on a like-for-like basis.
Source: marketwatch
