We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedRisk

M&S posts worst quarterly sales fall since 2008/09


M&S also said its head of the non-food business Kate Bostock is to leave in October

Article comments

Marks & Spencer reported its worst quarterly drop in sales since the height of the financial crisis on Tuesday blaming the record rainfall in April and June for making a difficult trading period worse.

The retail bellwether said sales at stores open more than a year fell 2.8 percent in the 13 weeks to 30 June, its fiscal first quarter marking the company’s worst quarterly sales fall in three and a half year.

"General merchandise underperformed in a difficult trading season. We are confident we are taking the necessary steps to address this," said chief executive Marc Bolland.

M&S also said on Tuesday that its head of the non-food business Kate Bostock would leave the business, adding her name to a list of significant top management departures this year.

The outcome compared with analysts' consensus forecast of a fall of 3 percent, according to a company poll of 12, and a decline of 0.7 percent in the fourth quarter of the previous year when the retailer erred by running out of best-selling women's knitwear and footwear lines.

M&S' like-for-like general merchandise sales, spanning clothing, footwear and homewares, fell 6.8 percent compared with analysts' consensus forecast of down 6.7 percent.

Food sales on the same basis rose 0.6 percent versus analysts' consensus forecast of a rise of 0.8 percent.

While wet weather clearly paid a part in M&S's poor general merchandise performance analysts point out that rivals John Lewis and Debenhams continue to post sales growth, indicating the company may have made more mistakes.

Bostock will leave M&S in October. Her job will be taken by John Dixon, the current boss of food.

"John has done an outstanding job in running the food division over the past 4 years," Bolland said.

M&S' gloomy update, published ahead of its annual shareholder meeting, will increase the pressure on Bolland, who in May reduced the retailer's sales forecast for its three-year growth drive.

Since then analysts have been edging down profit forecasts for M&S's year to end-March 2013 to about £680 million.

Share:

Comments

M&S posts worst quarterly sales fall since 2008/09
Risk

Energy risk: How data is eating up all the energy

Energy risk: How data is eating up all the energy

Any failure in energy supplies to data servers can result in severe consequencesmore ..


EMEA corporate upgrades outnumber downgrades, says Moody’s

Rating agency notes first such instance since the financial crisis yearsmore ..

World hit by record wave of 'mega' data breaches in 2013

Over half a billion records compromisedmore ..

CFOs bullish on UK growth prospects

Finance chiefs' appetite for risk has doubled that of a year agomore ..

Why BYOD needs to be on every CFO’s agenda

The Software Alliance explains why BYOD can be a legal nightmare for businessesmore ..

Audits key to managing cyber risks

Cybersecurity controls and reporting procedures should be assessed annuallymore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

In Depth
What every company needs to do about big data?

What every company needs to do about big data?

In the first of a three part series, Pat Brans explores just how big 'big data' will get? more ..

Advertisement

* *