Marks and Spencer plc, a major British multinational retailer, has revealed its full-year results. The company has reported that its Clothing & Home gross margin increased by 245bps; however sales remained low in the period under review. Continued difficult trading conditions in international markets resulted in decline of 39.6 per cent in operating profit to £ 55.8 million.
Commenting on the results, Steve Rowe, Chief Executive Officer of the company averred, “Our results last year were mixed. We underperformed in Clothing & Home sales. This is not satisfactory and today we are outlining our initial plans to address the issues and to position Marks & Spencer to deliver profitable sales growth. We are clear on the actions needed to recover and grow Clothing & Home, which is our top priority; and to focus on driving profitability. We are investing to re-establish our price position by sharpening prices and to enhance service by putting more employees into our stores,” adding, “We are, however, confident that our commitment to delivering the right product, price and service will help return Clothing & Home sales to grow.”
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M&S will continue to realise buying margin gains in Clothing & Home from ongoing sourcing initiatives. It expects to deliver an increase of c.50-100bps in the Clothing & Home gross margin in the coming year.
