logo-loader
viewMarks and Spencer Group PLC

Marks & Spencer clothing sales nosedive in weak market

Clothing and home sales fell 8.3% and like-for-like sales fell 8.9% in a weak market

38-(2).jpg
Rowe's clothing recovery plan includes cutting prices and reducing promotions

Marks and Spencer Group PLC (LON:MKS) looked set to stay out of fashion with investors on Thursday after its beleaguered clothing business took another dive.

Clothing and home sales in the first quarter fell 8.3% year-on-year and like-for-like sales fell 8.9% in what the chain described as a weak market, sparked by uncertainty linked to the EU referendum.

New chief executive Steve Rowe, promoted to the position after predecessor Marc Bolland quit, blamed the drop on a longer term strategy to revive the division.

Rowe's recovery plan includes cutting prices and reducing promotions.

"As a result, we ran fewer price promotions while continuing to lower prices to deliver real value to our customers, and moved the summer sale to July," he said.

"We knew our actions would reduce Total sales but we are seeing some encouraging early signs."

Even like-for-like sales in the group's better-performing food business dropped 0.9%.

Rowe said: "Our food business continues to strongly outperform a deflationary market, with like-for-like sales slightly down when adjusted for Easter timing."

He added that consumer confidence worsened in the run-up to the vote on June 23.

"While it is too early to quantify the implications of 'Brexit', we are confident that our strategic priorities and the actions we are taking remain the right ones," Rowe said.

Total group sales rose 1.3% in the 13 weeks to 2nd July.

 

 

 

 

Quick facts: Marks and Spencer Group PLC

Price: - -

LSE:MKS
Market: LSE
Market Cap: -
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Full interview: Revenue guidance from OptiBiotix as it eyes NASDAQ listing

OptiBiotix Health (LON:OPTI) provides a commercial progress update, explaining why in their financials some items are separated. CEO Stephen O'Hara tells Proactive London what's behind his thinking adding that Optibiotix hopes to reach profitability in 2020. News here too on Sweetbiotix and...

2 days, 1 hour ago

RNS

Director/PDMR Shareholding

5 days, 3 hours ago

3rd Quarter Trading Statement

1 week, 3 days ago

Interim Chief Financial Officer

2 weeks, 2 days ago

Total Voting Rights

2 weeks, 3 days ago

Block listing Interim Review

2 weeks, 3 days ago

Director/PDMR Shareholding

2 weeks, 6 days ago

Holding(s) in Company

3 weeks, 6 days ago

Holding(s) in Company

4 weeks, 2 days ago

2 min read