Sunday , October 2 2022

Marks and Spencer warn of a "slight improvement" as a drop in sales


Marks and Spencer warned that this year will be "a little improvement in the sales trajectory", after declaring a decline in clothing and food income in the conditions of disruptions caused by its restructuring program.

The group said on Wednesday that clothing sales for the six months to 29 September registered a decline of 1.1 percent, while food sales fell to 2.9 percent on the same basis.

Executive Director Steve Rove said the company estimates so much progression at the rate of change as the outcome of the trade. He added that restructuring is "restoring the foundations of future M & S".

About the clothes he said M & S increased appeal to younger buyers and families, and television host Holly Villoughby sold well, but "he continued to buy too many lines."

"We are too wide and too shallow. We allow consumers in terms of availability," he added, in response to questions about broken stock levels of autumn and winter lines.

"What we do in the food is to take some pretty confusing promotions and lower prices over pieces," said Rove. More than 100 products would see a decrease in Christmas prices.

Closing the stores can be more than 100 or more published, he added. "I do not want to stop at 100 and say" the job is over. "We need to make sure M & S responds to the future. We need to do what other traders do and write shops," Mr Rove said. Many stores of the group date from before the Second World War, and are located in locations that no longer favor customers.

Digital sales account for a fifth of total; M & S aims to invest another 16 million pounds by the third by 2022 to improve its problematic distribution center, Castle Donnington, and said it is "confident" that it will be able to handle top-notch Christmas campaigns. Last year, some things had to be removed from the sale, as the center could not cope with demand, although about 70 percent of ordered items were sold in stores.

In the first half, there were an additional 96.8 million pounds of reserve money, including 47 million pounds in closing the stores in the UK. Profit before taxation before adjustments for one-off items was 2% and amounted to KM 223.5 million. Analysts said this was above the consensus forecast, mainly due to a better margin in food and a change in capital spending time. However, the shares fell by as much as 5 percent.

"Poor food sales can see [full-year] consensus has diminished, because the victory in the first half seems to be largely time bound, "analyst Citi Adam Cochrane said in his remarks.

On annual results in May, the group booked more than 320 million euros in closing costs and said it expects an additional $ 150 million in billing while the program is completed, practically destroying legal age of the year. He increased his goal of closing the stores from 60 to 100 and slowed the expansion into Simpli Food's simple food chain. Managers missed bonuses at a weak store.

The company has repeatedly warned investors that it will be harder for them to decide, at the annual annual assembly they will announce that they will close more "non-cash" stores and which are uncertain.

However, it is better than its two major competitors in the middle market. Debenhams is traded with its owners due to long and restrictive leases, and its shares fell by four fifths in the past year to just 9t. House of Fraser was bought out of the Sports Direct administration.

"Although there is limited visibility of perennial earnings, making money seems robust, and the sustainability of dividends," said Kate Calvert to Investec. The temporary dividend was unchanged at 6.8p.

Analysts are expecting a full M & S gain of around £ 545 million, a figure that is expected to change slightly over the next two years. Last year's shares fell by 8%, while the market value of 4.8 billion pounds left the company to the bottom of the FTSE 100 index.

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