Setback for M&S as non-food sales slip in first quarter of the year

Underlying sales at retailer Marks & Spencer’s non-food business slipped in the first three months of its fiscal year, a setback for the group after a return to growth in the previous three months.

The 131-year-old firm said sales of general merchandise, spanning clothing, footwear and homewares, at stores open over a year fell 0.4 per cent in the 13 weeks to June 27th.

That compares to analysts forecasts in a range of flat to down 2.5 per cent, with a consensus of down 1 per cent, and growth of 0.7 per cent in the fourth quarter of M&S’ 2014-15 year, the division’s first growth in nearly four years.

The outcome reflected “a challenging and promotional quarter”, M&S said.

However, it said the division remained on track to deliver full year gross margin growth of 150-200 basis points.

First quarter like-for-like sales in M&S’s food business rose 0.3 per cent, a 23rd straight quarterly rise.

M&S said all other full-year guidance remains unchanged.

Reuters