UK retailer Marks and Spencer today(6 November)revealed a near-10%drop in first-half profits as sales gains at its food business failed to offset a decline in general merchandise.
The company booked first-half pre tax profit of GBP290m(US$463.4m),down from GBP321m last year.Group sales in the period rose 0.9%to GBP4.7bn,as a 3.4%gain in food revenue was offset by a 2.5%drop in general merchandise.UK like-for-like sales were down 1.4%in the six month period.
Commenting on the result,CEO Marc Bolland emphasised the company had been able to slow its UK like-for-like decline in the second quarter.
"We are pleased to report a better performance across the business in the second quarter.We took steps to address the short term merchandising issues in general merchandise and as a result,we delivered an improved performance.Food outperformed the market on a like-for-like basis,"Bolland said.
UK like-for-like sales were flat in the second quarter,compared to a 2.8%drop in the first quarter.
Bolland sounded an upbeat note going into the key Christmas trading period:"As we approach the all important Christmas period,we have better than ever Christmas products,to help our customers enjoy a special Christmas at home."
