Marks & Spencer says the
performance of its clothing business is improving despite posting another fall
in sales.
The retailer, which will hold its
annual general meeting at Wembley Stadium on Tuesday, said like-for-like sales
in its clothing business fell by 1.6pc in the 13 weeks to June 29.
This is the eighth consecutive quarter that M&S's clothing sales
have fallen but it also represents the smallest decline over that two year
period.
Despite clothing sales declining, M&S said its food sale rose 1.8pc on a like-for-like basis, while international sales rose 8.7pc and online sales increased 29.9pc.
Despite clothing sales declining, M&S said its food sale rose 1.8pc on a like-for-like basis, while international sales rose 8.7pc and online sales increased 29.9pc.
Marc Bolland, chief executive, said: "Our general merchandise business
showed some improvement this quarter and the food business delivered another
excellent performance, continuing the strong underlying trend."
In clothing, Mr Bolland said trading conditions were "difficult" and there had been a "further intensification" of promotional activity on the high street.
In clothing, Mr Bolland said trading conditions were "difficult" and there had been a "further intensification" of promotional activity on the high street.
Mr Bolland said M&S remained "cautious" about the
outlook, despite industry data showing an improvement in high street sales as
consumer confidence slowly returns.
In total, M&S like-for-like sales in the UK rose 0.3pc, while total
sales in country rose 2.7pc. Around the world, group sales rose 3.3pc.
The trading update from M&S comes ahead of the crucial launch of
its new autumn and winter clothing collection in stores.
Later this month, M&S will begin selling its revamped clothing
range, the first to be overseen by the new management team in general
merchandise of John Dixon, who was moved from food to lead the division, and
Belinda Earl, the style director and former chief executive of Debenhams.
Clive Black, analyst at Shore Capital, said: "We acknowledge the
understandable concern on behalf of investors surrounding the ongoing
underperformance of the core ladieswear category in the UK.
"The performance has been unacceptable for a sustained period of
time and the management machinations have not been wholly constructive. As
such, there is pressure on the forthcoming autumn/winter range to make progress
for M&S.
"As we have stated before, we are encouraged by the fashion
editors’ response to the new ranges, but it will be the sell through which will
be more telling to our minds."
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