M&S reports drop in Q3 revenue

M&S reports drop in Q3 revenue

M&S reports drop in Q3 revenue

M&S, which is in the middle of a turnaround, said that like-for-like sales in its general merchandise arm were down 2.8 per cent in the 13 weeks to December 30.

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However, the impact of an unseasonal October resulted in an overall revenue decline.

M&S says it adhered to its full price stance despite the promotional nature of the period, and did not participate in Black Friday.

Investors needed to be patient and M&S would return to positive like-for-like sales, he said.

We've already had a first glimpse of that here on Monday where United Kingdom 2017 consumer spending fell for the first time in five years.

"As a result, we carried more stock into the December sale", said CEO Steve Rowe.

A profit upgrade from Next and contrasting earnings alert from Debenhams last week set the scene for a mixed performance and the latest clutch of sales reports show it was by no means a jolly Christmas for all.

United Kingdom supermarket retailer Tesco posted its eighth consecutive quarter of positive sales growth, with its clothing sector performing well throughout the Christmas period as its F&F ranges continue to prove popular with customers.

In November, M&S said it would speed up store closures, relocations and downsizings and re-position its food offer, including slowing down openings of "Simply Food" stores.

Its food business had a 0.4 per cent drop in comparable sales, which was again better than analysts' forecasts that they would dip by 1.1 per cent.

Online sales also suffered, with growth slowing to 3 percent, from 6 percent in its second quarter.

CMC Markets analyst, Michael Hewson commented "With concerns starting to rise about an [increase] in inflation due to the recent strength in oil prices it is understandable that bond markets might be nervous if a normally large buyer of United States treasuries either stops buying them or even starts to sell large amounts".

"In these turbulent times it's great having two retailers to bounce ideas around". The engineering firm said that changes in US taxes will result in a one-off non-cash tax credit for 2017.

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