- Prachi Singh |
For its full year to March 30, 2019, Marks and Spencer Group Plc (M&S) reported 9.9 percent decline in profit before tax & adjusting items to 523.2 million pounds (663 million dollars), driven by headwinds on sales, partly offset by the operating costs transformation programme. The company said, total revenues declined 3 percent to 10.4 billion pounds (13.2 billion dollars) with UK clothing & home revenue down 3.6 percent and like-for-like revenue down 1.6 percent.
Commenting on the full-year trading, Steve Rowe, Marks & Spencer CEO said in a statement: “We are deep into the first phase of our transformation programme and continue to make good progress restoring the basics and fixing many of the legacy issues we face. Whilst there are green shoots, we have not been consistent in our delivery in a number of areas of the business.”
Review of full-year M&S results
M&S added that international revenue decreased by 13.4 percent at constant currency driven by the closure of stores in loss making exit markets, and the sale of its business in Hong Kong to a franchise partner in December 2017. Excluding Hong Kong and exit markets, revenue grew by 1.1 percent. In the year, the company opened 37 stores and modernised a further 56.
For 2019/20, the company said, it remains in the difficult early stages of transformation programme and while it expects some improvement in trading in each of the major businesses in the year ahead, progress is likely to be second half weighted. In clothing & home, M&S expects net store closures to reduce sales by 3 percent. The company anticipates gross margin to be negative 25bps to positive 25bps.
Picture:M&S media library