UK retailer Marks & Spencer Group today warned on annual profits as it posted a big fall in Christmas same-store sales and said it carried more stock over into its end-of-season sale than last year.
The firm, which last year fended off a £9 billion sterling bid approach from retail tycoon Philip Green, said it expected profit before tax and exceptional items to be within a range of £600m-625m in the year to March. Analysts' consensus forecast had been around £675m, according to a Marks & Spencer spokeswoman.
Like-for-like sales on a comparable trading week basis were down 5.6% in the six weeks to January 3.
'Despite heightened levels of promotional activity over the Christmas period, including our two Christmas Spectaculars, significantly more stock was carried over into the end of season sale compared with last year,' the firm said in a statement.
Analyst said the figures were disappointing, but not a big surprise after gloomy Christmas trading statements from other retailers. Rising interest rates, falling house prices and high levels of consumer debt had braced analysts for a poor Christmas on the high street.
