United Kingdom: Marks & Spencer reports a full-year profit growth.
Marks & Spencer Group Plc ( MKS), the U.K.’s largest clothing retailer, said the economic outlook remains challenging after it reported 13 percent growth in profit in Chief Executive Officer Marc Bolland's first year at the helm.
Egytex News Desk
Source: Egytex.com
A squeeze on consumers’ disposable incomes and rising prices for commodities mean the retailer is “cautious” about prospects, London-based Marks & Spencer said today in a statement. The shares fell as much as 2.2 percent.
Bolland, 51, has increased market share across both Marks & Spencer’s main divisions by improving presentation of clothing ranges and adding new food ranges. He’s also increased advertising with the ‘Only at Your M&S’ campaign. Pretax profit in the year through March climbed to 714.3 million pounds ($1.15 billion), excluding property gains, beating the 711 million- pound average estimate of 24 analysts compiled by Bloomberg.
“We’ve got the good news now, but we’re a bit more cautious going forward,” Tom Gadsby, an analyst at Matrix Capital in London. He has an “add” rating on the stock.
Marks & Spencer shares fell as much as 8.9 pence to 388.1 pence and traded at 389.5 pence as of 8:07 a.m.
The short-term outlook for the economy “remains challenging,” the retailer said in the statement. U.K. consumer confidence slumped to its weakest level since the depth of the recession in February 2009, GfK NOP Ltd. said in a report last month. Household finances are under pressure from inflation that’s double the Bank of England's 2 percent target and the tightest fiscal squeeze since World War II.
New Segmentation
Marks & Spencer said today it will test a new segmentation of its stores from October with better layout, improved branding of its clothing ranges and more food items. The retailer also plans its first local language and currency website in France by the end of this year.
Bolland has hired a raft of new executives including Tesco Plc’s Laura Wade-Gery to oversee its multichannel push and Inditex SA’s Jan Heere to head up the international business. The retailer is extending its stores in Shanghai and re-entering France after a 10-year hiatus.
Net income rose to 612 million pounds, the statement shows.
The retailer said it will pay a final dividend of 10.8 pence a share, a 14 percent increase on the previous year
Source: Egytex.com
From the Egytex news archive, first published on 24 May 2011. Figures and names are as reported at the time.
