Retailer Marks & Spencer reported second quarter general merchandise sales towards the lower end of market expectations, up only 0.6% on the same period last year.
The 100-year-old firm, which sells clothes, food and homeware from over 300 shops across the UK, said non-food like-for-like sales were flat compared with forecasts of minus 1% to plus 2.5% growth.
Clothing sales were up 0.9%, but M&S said full price sales increased 3%. Food sales were up 1.6% on a like-for-like basis.
'Clothing performance this quarter has been reasonable,' said chief executive Roger Holmes. 'We have delivered a 3% increase in full price sales and put less stock into the summer sale. The continuation of the hot summer weather did not help our clothing performance in September, but overall we have held market share for the half-year.'
He said that as expected, home sales were impacted by changes the firm is making to build stronger foundations for future growth, which includes the opening of the stand-alone Lifestore in early spring.
Food sales increased 5.4%, benefiting from new space. Like-for-like food sales were up 1.6%.
