Marks and Spencer's share price has taken a hit after the retailer reported worse-than-expected third-quarter sales figures, despite strong demand for food over Christmas.
Shares in the UK retailer dropped by around 5% today (10 January) after it reported a 1.8% fall in like-for-like UK sales for the 13 weeks to 29 December.
Group net sales crept up by just 0.6% versus the same period of the previous year, buoyed by a 0.3% increase in food sales.
However, the M&S group net sales increase did not take into account exchange rate fluctuations. The firm said its international business saw sales rise by 4% on a constant currency basis, but, in reality, international sales were flat due to weakness in the Euro.
Food sales were held up by a record Christmas trading period for the unit, which sold GBP330m of food in the two key Christmas trading weeks. "Our strategy to focus on innovation worked, with over 700 new products launched during the quarter," said the firm.
"We expect the pressure on consumers' disposable incomes to continue in 2013. As a result we remain cautious about the outlook for the year ahead," said M&S.
