Fourth-quarter sales at British retailer Marks & Spencer Group came in much worse than predicted today as the recovery of the UK's biggest clothing chain unravels.
Non-food sales were down 5.2% on a like-for-like basis, compared with analyst estimates that ranged from a drop of 2.4% to growth of 2.3%. Food sales were also worse than predicted, down 1.4% on a like-for-like basis.
M&S said its strong control of costs would offset the disappointing sales performance, meaning full year pre-tax profit would be in line with consensus estimates. Those forecasts are currently bunched around £755m sterling.
'Sales this quarter are clearly not good enough,' said Chief Executive Roger Holmes. 'We are taking action on a number of fronts to accelerate the transformation of the business and deliver improved performance.'
M&S got back on its feet after a dramatic slump in profits and sales but its recovery has faltered with a year-long run of disappointing clothing sales.
The retailer has recouped 1% of the 3% market share it lost since its peak, having failed to make any gains in the last 12 months. It is increasing profits by switching to cheaper overseas suppliers and cutting costs.
