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M&S profits down for first time in three years Tuesday, 22nd May 2012
Marks & Spencer chief executive Marc Bolland. Photo credit: Marks & Spencer plc
Tough trading in womenswear and home departments dragged annual profits down 1 per cent.
Marks & Spencer (M&S) has been forced to lower its sales targets as the retailer on Tuesday announced its first drop in profit for three years.
Despite a strong performance in its food halls, underlying pre-tax profit for the year to 31 March fell 1 per cent to £705.9 million. Total sales grew 2 per cent to £9.9 billion.
Having set a target in late 2010 to grow revenues by between £1.5 billion and £2.5 billion over three years, M&S chief executive Marc Bolland has now cut this rate to between £1.1 billion and £1.7 billion.
Although Bolland highlighted the group’s “significant progress” during the period, Marks & Spencer would not comment on current trading, which is likely to have been hit by the recent heavy rainfall.
Bolland added that the group will cut investment in its UK stores by £200 million over the final two years of its strategy review.