Marks and Spencer Group Plc, the UK's largest clothing retailer, lowered its sales target amid a slump in consumer spending that led to a drop in profit.

Underlying pretax profit fell 1.2 per cent to £705.9 million in the year ended March 31, the London- based retailer said today in a statement.

That beat the £693.4 million average estimate of 21 analysts compiled by Bloomberg.

The full-year dividend was unchanged at 17 pence. Sales will grow by between £1.1 billion and £1.7 billion by fiscal 2014, according to the company.

Chief executive officer Marc Bolland had previously set a target for revenue to grow by as much as £2.5 billion from fiscal 2011 as the retailer expands internationally and bolsters its online offer.

"Marks and Spencer performed well in a challenging economic environment, growing group sales by 2 per cent and holding market share," Mr Bolland said in the statement. "Whilst the economic environment has deteriorated since we first set out our strategic plans, we have made significant progress."

The stock rose 0.4 per cent to 338.2 pence in London trading yesterday.

Bloomberg