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Thursday, July 7, 2016

Marks and Spencer clothing sales plunge in first quarter

Marks and Spencer said like-for-like sales at its clothing arm fell by 8.9% in the first quarter, as a "weak market" and fewer promotions hit sales.


Meanwhile, like-for-like food sales in the quarter were down by 0.9%.

In May the firm's new boss Steve Rowe unveiled plans to revive the retailer's clothing and homeware business, with lower clothing prices and better style.
The firm said consumer confidence weakened in the run up to the June 23 European Union referendum in the UK.
But it said it was too early to quantify the implications of Brexit.

'Strategic priorities'

M&S also said that this year its summer sale began on 5 July, two weeks later than in 2015, a move that would reduce total sales.
"We continued to reduce the number of promotional events during the quarter, including just one 'cyber day' compared with six last year," it said, adding that it had repriced some 1,000 clothing lines since January.

Chief executive Steve Rowe said the food business "continues to strongly outperform a deflationary market", with the 0.9% fall in like-for-like sales reflecting the timing of Easter.
He said the firm was "confident that our strategic priorities and the actions we are taking remain the right ones to deliver results for our customers and our business".
Today's first-quarter figures from M&S are worse than analysts' forecast a 5% to 8% drop for clothing sales.

M&S said its full-year guidance remains unchanged: "We continue to manage the business for the challenging market environment."

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