Marks and Spencer warns new strategy will hit short-term profits

Marks and Spencer has reported a rise in underlying profits but its new boss has warned that improving its clothing and home range will hit profits in the short term.

For the year to 2 April, underlying profits rose 4.3% to £689m.

Steve Rowe, who took over as chief executive last month, says he intends to make a number of changes to the clothing range in particular.

He promised to lower prices and improve the fit of clothing.