January 21, 2019

Marks & Spencer tackles structural issues as profits slump

23 May 2018, 04:56 | Rodolfo Wallace

Toby Melville Reuters

Toby Melville  Reuters

FTSE 100-listed Marks & Spencer PLC said on Wednesday that profit slumped in its recently ended financial year, as it works to rectify "a number of structural issues" at the company.

M&S reset its strategy in November, two months after retail veteran Archie Norman joined as chairman, detailing a five-year programme of store closures and relocations, and moves to make its misfiring food business more competitive. The shares are outperforming the broader United Kingdom market, with the benchmark FTSE 100 index having slipped into the red and now standing 0.56 percent lower at 7,833.17 points.

The high street staple's pre-tax profits plunged 62.1pc to £66.8m for the year ending March 2018, largely impacted by£321.1m of costs linked to shutting underperforming shops. In addition, M&S reported strong cash generation, even after restructuring costs reduced net debt by 107.2 million pounds, enabling the group to maintain a full year dividend of 18.7p.

The update comes after the retailer announced the next tranche of United Kingdom stores proposed for closure yesterday, noting that it would now close over 100 stores in total by 2022. The full stores stock both fashion and food.

Adjusted pretax profit still fell 5.4% to GBP580.9 million, hit by a decrease in its Food gross margin, which fell "more than expected" by 140 basis points during the year.

Watchdog: US-Chinese Agreement 'Does Nothing to Reduce Trade Deficit'
Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He during talks in Washington last week that would remove the U.S. Commerce Department's ban on American companies selling to ZTE in exchange for the purchase of more U.S. agricultural products.

US will crush Iran: Mike Pompeo
Whatever Trump may eventually decide to do, he should not claim to do it in the name of "the long-suffering people of Iran". Among the items on Pompeo's wish list is a full acknowledgment of Iran's previous attempts to develop a nuclear weapon.

Donald Trump Orders Justice Department to Investigate Obama Surveillance
The Associated Press reports that Giuliani said that Mueller's probe could end by September 1 if Mr. Meanwhile, it's still unclear when or if the president will sit down for an interview with Mueller.

"This is vital as we start to leverage the strength of the M&S brand and values across a family of businesses to deliver sustainable, profitable growth in three to five years".

That was ahead of analysts' average forecast of £573 million but down from £613.8 million made in 2016-17. "These changes come with short term costs which are reflected in today's results", said Steve Rowe, Marks & Spencer CEO in a statement.

M&S lost more ground in its fourth quarter, with like-for-like clothing and home sales down 3.4 percent, worse than the previous quarter's 2.8 percent drop, and same store food sales down 0.6 percent, against a third quarter fall of 0.4 percent.

M&S is not the only retailer finding the going tough in Britain.

Other News

Trending Now

Guardiola Extends Man City Deal Till 2021
Manchester United received more money than champions Manchester City from the Premier League for the 2017-18 season. Guardiola revealed his delight at signing the new contract, saying: "I am so happy and excited".

Andy Serkis' Mowgli Is A Darker Take On The Jungle Book
On the general tone of the film, Serkis explains, "We wanted to engage much more closely with the tone of the book". Serkis complimented Christian Bale ( Bagheera ) and Cumberbatch for their portrayal of their respective characters.

The incredible AB de Villiers 'spiderman' catch that left Virat Kohli gobsmacked
Williamson then manipulated the fields and the bowlers expertly to bring Sunrisers to within touching distance of a magical win. In their run-chase, the Sunrisers' got off to a solid start with their openers Alex Hales and Shikhar Dhawan adding 47.

NYC attorney who unleashed racist rant at Manhattan eatery has NJ ties
The manager tried to explain that the employee was speaking Spanish to a regular customer who frequents Fresh Kitchen . The clip quickly sparked outrage among many critics, including U.S.

Protests against Vedanta copper smelter in Tuticorin turn violent
Among those who died were identified as Antony Selvaraj, Kandiah, Gladson, Jayaram, Maniraj, Tamilarasan, Shanmugham and Venista. As protestors started pelting stones enroute, police had to use mild lathi-charge to disperse the crowd and also teargas.

Police cornered Texas school shooter within four minutes
He said he had asked police to allow him to go into the school during the standoff so his son could kill him instead of students. Two teachers and eight students, including Pakistani exchange student Sabika Sheikh, 17, were killed in the attack, police said.

Ramos expects tough final against Liverpool
Ryan Giggs has revealed who he hopes wins the Champions League final on May 26 in Kiev - but not for the reason you might think. We know there is an equally well qualified team on the other side.

D'Antoni: Warriors Have 'All The Pressure' in Game 4
When we defend at that level and take care of the ball, we're usually in pretty good shape". But the first two games, he didn't have open looks from three. "That's it.

Pence warns Kim not to 'play' Trump
Moon, long an advocate of engagement with North Korea , must try to convince Trump that it's worth proceeding with the Kim summit. The group that arrived by charter flight from Beijing is made up of media from the U.K., Russia, China and the United States.

IPL 2018 qualifier: CSK clinch thriller against SRH, enter final
Siddarth Kaul then clean bowled Suresh Raina and Ambati Rajudu in successive balls to leave Sunrisers at 24 for three. Paceman Dwayne Bravo set up the win with impressive bowling figures of two for 25 to restrict Hyderabad to 139-7.