M&S beats estimates for first half

Marks & Spencer Group plc reported first-half earnings that beat estimates and forecast an increase in profitability for the year as it offers fewer promotions.

Gross margins will be “towards the top end” of a range from unchanged to a 0.25 percentage point increase, the London-based company said yesterday as it reported a 5.8% drop in underlying pre-tax profit and said clothing sales declined at a more moderate pace in the second quarter.

The retailer is being less promotional than last year and has increased supplies of popular advertised lines such as military coats, chief executive Marc Bolland said.