M&S in 64% profit crash
One-off costs blamed for plunge
CRITICS yesterday warned Marks & Spencer were “out of excuses” after posting a 64 per cent plunge in profits.
The high-street giants blamed £437million of supposed one-off costs for the slump.
They included £127million for axing their final salary pension scheme, £23million to up base pay to £8.50 an hour, £47million to close 10 stores and £132million to shake up their overseas arm.
It led to profits crashing to £176million in the year to April.
Excluding one-offs, they fell 10.3 per cent to £614million – a long way from their £1billion heyday in 2008.
M&S chief executive Steve Rowe insisted the firm’s recovery plan was on track, saying: “We have achieved a huge amount.”
The chain said the number of clothing and homewares product lines had been cut by 10 per cent, prices on 2400 items reduced by about 18 per cent and discounting slashed.
Sales of 100 top clothing lines – including skinny jeans and white T-shirts – rose seven per cent and their bra market share hit a record 34.9 per cent, boosted by a range from Hollywood star Rosie Huntington-Whiteley.
Clothing and home – 40 per cent of M&S sales – tumbled 5.9 per cent in the three months to April, blamed in part on the timing of Easter. Food sales fell 1.9 per cent last year.
John Ibbotson, analyst at Retail Vision, said: “M&S have run out of excuses.
“These results are nothing less than awful.”