M&S sales grow despite slump fears
Resurgent retailer Marks & Spencer today shrugged off fears over extreme weather conditions and interest rates to report a rise in first quarter sales, albeit at the slowest pace for 18 months.
The group posted like-for-like sales growth of 2% for the three months to June 30, surprising both investors and analysts, who were bracing themselves for a trading slump.
But while the high street giant’s figures were better-than-expected, the sales growth was the worst recorded for six quarters as M&S battled against wet weather conditions and uncertainty over consumer spending after five rate hikes in less than a year.
The group’s sales figures – seen as an insight into the wider health of high street trading – compare with a rise of 8.2% in the first quarter of last year.
Food sales saw only marginal growth over the past three months, rising by 0.7% on a like-for-like basis, although the group posted a 2.9% rise in like-for-like sales of general products as shoppers turned to homewares in the dull weather.
Stuart Rose, M&S chief executive, said he was “pretty pleased” with the results, given the adverse conditions faced by the chain and disruption caused by a sweeping store refurbishment programme.
He added that trading would remain “very challenging” in the short-term, but would not derail its recovery plans.
