BRITISH RETAILER Marks & Spencer said it was hopeful the downturn in its markets had bottomed out as it reported a 40 per cent slide in full-year profits and cut its dividend by a third to conserve cash. “I’m not into ‘green shoots’ mode but . . . maybe this is a plateau at the bottom,” said executive chairman Stuart Rose.
The clothing, food and homewares group said yesterday it aimed to revive its fortunes with a new marketing campaign: “Quality Worth Every Penny”, and improve its supply chain and systems, whilst forging ahead with expansion online and abroad.
The plan will be led by finance director Ian Dyson, marking him as the frontrunner to succeed Mr Rose who plans to step down in 2011. Carl Leaver, head of the international business and also tipped as a potential successor, resigned.
“There’s a push-pull going on at the moment between the consumer who is wanting to be more cheerful . . . [while] there are still some issues in the financial markets which could destabilise things,” said Mr Rose.
The 125-year-old group made an underlying pretax profit of £604.4 million (€686.3 million) for the year. That compares with £1 billion profit the previous year. Sales were up 0.4 per cent at £9.1 billion.
M&S ended the year with net debt of £2.5 billion and cut its dividend to 17.8 pence from the 22.5 pence paid in 2007/8. – (Reuters)
