Marks & Spencer has posted a 1.2% fall in clothing and home sales, with overall like-for-like UK sales down by 0.5% for the first quarter.
The results will be seen as reasonably positive after HSBC forecast a 2% fall in like-for-like clothing sales. The results are also an improvement on the 5.9% fall in like-for-like overall sales during the previous quarter.
The retailer posted a 0.1% fall in like-for-like food sales for the period, which covers the 13 weeks to 1 July 2017. Total group revenue was up by 2.7% year on year to £2.5bn (up by 1.8% in constant currency). Overall UK revenue was up by 2.6% to £2.3bn.
Full-price clothing sales were up circa 7%, as M&S reduced the number of promotions and did not hold a clearance sale in the quarter, unlike last year. The retailer starts its summer sale today, a week later than last year, with terminal stock for the season significantly down.
Chief executive Steve Rowe said: “Trading in the first quarter was in line with our expectations and we are on track with delivery of the plan we announced last year. I am pleased that we continue to increase full-price sales in clothing and home, with reduced discounting and no clearance sale in the quarter.
“In our food business, we delivered strong growth from new Simply Food openings, and are prioritising better ranging and stronger promotions.”
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