M&S reports drop in Q3 revenue

  • M&S reports drop in Q3 revenue

M&S reports drop in Q3 revenue

However, when taking all of the Big 4 retailer's worldwide markets into account, total like-for-like sales grew by 0.6 per cent during that period, but overall sales enjoyed a 1.8 per cent uplift.

M&S said like-for-like revenues fell 1.4 per cent in the 13 weeks to December 30 while Tesco's United Kingdom sales rose 2.3 per cent in the 19 weeks to January 6.

The retailer also said that it head improved customer service by opening more tills and improving stock availability. While retail inflation remains a market-wide issue, Tesco's fresh categories significantly outperformed the market, with meat and poultry volume sales particularly strong.

Like-for-like sales for the United Kingdom and Ireland - which compare performance across the same stores - grew 1.9 per cent in the crucial six-week festive period to 6 January, driven by a rise of 3.4 per cent in food sales.

In stark contrast to M&S's woes, British online fashion retailer Boohoo, founded little over a decade ago, said it had doubled revenue in the final four months of the year and raised its sales forecast.

Alex Williamson, chief executive of House of Fraser, said: "We are a business in transition; our focus is on driving profitability rather than chasing revenue at any cost".

Marks & Spencer blamed a tough October for a 2.8 per cent fall in like-for-like clothing and home sales over the 13 weeks to December 30, while it said "ongoing under-performance" in its food arm saw sales fall 0.4 per cent.

"In our food business, ongoing trading pressures continued in the lead up to Christmas as consumer spending and choices reflected tighter budgets", he added.

Mr Rowe sought to assure that the clothing arm was still turning around and would have seen sales rise in the Christmas quarter had it not been for the unusually warm October.

Like-for-like sales at Marks & Spencer (M&S) were underwhelming, dropping by 0.4%.

In November, M&S said it would speed up store closures, relocations and downsizings and re-position its food offer, including slowing down openings of "Simply Food" stores.

And despite the sales disappointment, M&S maintained its guidance for the full 2017-18 year.