More pain on the horizon for retailer M&S

Marks & Spencer is set to report another dip in profits as its clothing and food divisions come under pressure amid a major restructuring.

The high street stalwart is tipped by City analysts to book a fall in underlying pre-tax profit of as much as 14% to £188 million for the first half of the year.

Consensus forecasts point to a pre-tax profit of £203m versus £219.1m in 2017.

Like-for-like sales at the troubled clothing and home division are expected to drop 1.2%, while comparable food revenue is set to fall 2%.

Diminishing sales will reflect the impact of a painful five-year restructuring programme, which is being spearheaded by M&S chairman Archie Norman and chief executive Steve Rowe.

The duo have been seeking to save costs through store closures and shutting distribution centres as part of a wide-ranging efficiency drive.

Under the plan, M&S will shut more than 100 clothing and home outlets by 2022.

Around 29 stores have closed to date.

Graham Spooner, investment research analyst at The Share Centre, said: “Marks’ shares have largely traded sideways since full-year results in May.

“The company said it expected profit margins at its clothing and home business to improve this year so the market will be looking out for that in the latest update.”

In May, M&S saw full-year profits collapse as closure costs associated weighed on the bottom line.

It reported a 62.1% fall in pretax profit to £66.8m in the year to March 31.