M&S reports 40% drop in profits

BRITISH retail giant Marks and Spencer (M&S) has reported a 40% drop in full-year profits for the 12 months to the end of March and announced the need for “a step-change” in the way it services its customers and operates its business.

Pre-tax profits for the year totalled £604.4 million (€688m) – down from a little more than £1 billion at the end of the previous year. Operating profit was down from £1.09bn to £768.9m (€874.897). Adjusted earnings per share fell from 43.6p to 28p.

While international sales rose 25.9% over the 12 months, sales in the group’s Britain and Ireland division grew only 0.4% on a year-on-year basis.