M&S food sales fall again

Marks & Spencer today reported a further deterioration in food sales during the final two weeks of a troubled half year for the embattled retailer.

The latest update – covering the fortnight not included in a statement on September 21 – showed sales in clothing and home remained steady and that interim profits would be at the upper end of current market expectations.

However, M&S warned bottom-line results for the six months to October 2 would include £80m (€116m) of exceptional charges, including an undisclosed amount for fending off a £9bn (€13.1bn) takeover bid by retail entrepreneur Philip Green.

Office restructuring, the closure of its Lifestore venture in Gateshead and the cost of moving to a new head office are also included in the figure.

Stripping out the one-off items, M&S said it expected profits to be in the range of £285m (€414.1m) and £295m (€428.6m) – compared with £325m (€472.2m) for the same period a year earlier. Analysts had previously pencilled in profits forecasts of between £264m (€383.6m) and £293m (€425.7m).

The latest sales figures from M&S show like-for-like sales in the food department fell 2.6% in the 12 weeks to October 2, against the 2% fall announced on September 21 for the 10-week period.

While the decline in clothing and home remained at 7.7%, the overall like-for-like sales fall widened to 5.5% from 5.2%, the retailer said. Across the half-year period to October, same-store sales were 4.2% weaker.