British retailer Marks & Spencer has reported a 19% drop in annual profits to £618.5m, though the figures were in line with expectations.
A turbulent year saw a complete overhaul of management and a takeover approach from retail tycoon Philip Green. M&S warned that tough economic conditions and intensifying competition meant its outlook remained challenging.
The company blamed the slump in profits on having to slash prices to shift excess stock, and the retailer said £1.3 billion of old products and commitments had now been cleared.
Revenues from its UK stores were 1.7% lower at £7 billion during the year to April 2, but the fall was cushioned by the opening of new trading space with like-for-like sales sliding by 5.1%.
Chief executive Stuart Rose, who was parachuted into the top job at M&S in May last year after Mr Green revealed his bid interest, said a 3.1% drop in clothing sales was 'disappointing' because more shoppers had visited the stores.
M&S said its share of the clothing market had fallen by 0.5% to 10.5% after sales were hit by 'inconsistent pricing' compared with its high street rivals.
Food sales were 2.4% higher on a year earlier after the group opened 31 more Simply Food stores in the UK, but 2.6% lower on a like-for-like basis while homeware retreated even faster - down 21.4% at £407.6m.
In Ireland, M&S said the performance of its new stores in Blanchardstown and Dundrum in Dublin had been encouraging. It now has nine stores in the Republic, with a further two planned in Blackrock and Galway over the next two months.
