A strong showing by David Beckham’s range of children’s clothing failed to prevent a fall in fourth quarter general sales for Marks & Spencer, the group said today.
Despite good contributions from schoolwear and the England captain’s DBO7 range, Marks & Spencer said that other childrenswear lines had again affected overall clothing sales in the 11 weeks to 29 March.
The high street favourite said that total sales for clothing, footwear and gifts fell by 0.3% in the period while general like-for-like sales – which also includes its home range – were down by 0.4%.
Chief executive Roger Holmes said that the David Beckham range and schoolwear represented “pockets of recovery” for the store’s troubled children’s lines, which represent 10% of overall clothing sales.
He said: “The areas of success that we have achieved so far in David Beckham DB07 and schoolwear gives us an indication of what we need to do to build a better recovery.”
The group blamed weakening market conditions for the lower general sales but said it had outperformed the market in food.
Like-for-like food sales were ahead by 2.6% on the same period last year helping the group to achieve an overall like-for-like improvement of 1%.
Holmes said: “Our general merchandise sales have been affected by weakening market conditions during the last quarter but performance for the year overall has been satisfactory.
“In food, we have again delivered strong quarterly sales, outperforming the market.”
Holmes said that he expected the group’s full year profits to come in “at the top end” of market expectations.
Finance director Alison Reed said that analysts expected the company to make between £710m and £720m, adjusting for a £10m one-off cost from moving the firm’s head office to London’s Paddington Basin.
For the full year to 29 March, general sales were up by 9% and food rose 3.7% on a like-for-like basis – representing a 6.7% increase overall.
The most difficult part of the country for Marks & Spencer was the Greater London area where general merchandise sales were down around 8%.
Shares were down 10.75p at 284.5p.
References: EGi News 08/04/03
