Marks & Spencer sales up for 3rd consecutive quarter |
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Published
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Tue, 11 Apr 2006 09:30
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LONDON: Retailer Marks & Spencer Group Plc. reported continuing recovery for a third consecutive quarter with underlying sales for the fiscal fourth quarter ended 1 April growing at 6.8 per cent beating market forecasts of 3.2 per cent.
The group's like-for-like food sales were up 5.6 per cent compared with forecasts around 4.8 per cent while non-food sales shot up 8.2 per cent against the expected growth of about 1.6 percent, the company said.
The sales growth was led by clothing and home products. The company has engaged celebrities including soccer player Jamie Redknapp and model Twiggy to boost the appeal of its clothing to consumers.
The company expects to achieve a pretax profit of 745 million pounds to 755 million pounds against the current forecast of 730 million pounds to 770 million pounds.
Chief executive Stuart Rose said the fourth quarter results were strong and he expects to pay a one-off bonus of 20 million pounds to the staff. Rose, who came into the company to help it ward of the 9.1- billion-pound acquisition bid by Philip Green in 2004 is rebuilding the company's profit margins and attempting to return it to its days of greater profitability. He has reduced prices, streamlined ranges and invested heavily in an advertising plan.
He said the company now plans to add 3 per cent more selling space and spend around 520 million pounds to 570 million pounds on store refurbishments and other projects in 2006-2007.
Marks & Spencer will announce its full year figures on 22 May.
The company's shares closed at 564 pence Monday, a gain of 64 per cent in the last 12 months, according to the company.
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