Bolland burdened by M&S’ clothing sales

MARKS & Spencer boss Marc Bolland is under renewed pressure after disappointing clothing sales blew the firm’s fledging recovery off course.

Britain’s biggest clothing retailer used the day of its annual shareholder meeting to post a 0.4pc fall in underlying first quarter sales – after stripping out the effect of store openings and closures - for its general merchandise division, which includes clothing. Sales were down on the 0.7pc rise seen three months earlier, when M&S finally broke its spell of 14 consecutive quarters of falling sales growth. The unseasonably cool weather in May meant its new summer lines remained on the shelves as shoppers continued to wear their warm winter woolies.

This meant M&S, along with its rivals, was forced to discount new ranges in June. Industry data showed High Street sales for that month were the worst for a decade.

Bolland, pictured, said his competitors had put on more promotions than in the previous year and that he had to follow suit. The online business performed strongly with sales up 38.7pc - international sales were also positive, up 0.7pc.

Bolland remained bullish saying the update was ahead of expectations and ahead of rivals. ‘I wouldn’t record it as a step back,’ he said. ‘We have seen a continuation of the main trends from the quarter before. Sales were ahead of expectations but affected by external factors. The market was down 2pc – it is hard to say we are disappointed. We are pleased.’ M&S shares fell 12p to 535p. Women’s clothing has been a thorn in the side for Bolland, who has been attempting to breathe new life into the high street stalwart. But some shareholders at yesterday’s annual meeting were sceptical about his progress.

Former M&S clothing designer Muriel Conway said she could weep when she looks at the new designs, adding: ‘The prints are ugly and vulgar, the colours are crude and cheap. Why are the necklines always too low?’

Another investor, Tony Japhet, who also used to work in the merchandising department at M&S said availability of products was also a problem. ‘It’s not what’s on the racks that matter,’ he said. ‘It’s what’s not on the racks.’

Darren Shirley, an analyst at broker Shore Capital, said: ‘Whilst the update has taken us back to familiar territory for M&S, with one step forward and one step back, we remain positive.’