The increase in quarterly sales at Marks & Spencer slows
Marks & Spencer has reported a third consecutive quarter of sales growth recurring but at a slower pace and was cautious, like its competitors, prospects of consumption.
The British group, the number one clothing in the United Kingdom and also present in food and household goods, said its sales at stores open at least a year rose 3.6% the 13 weeks ending July 3, which correspond to the first quarter of its fiscal year.
This increase is in the top end of analyst expectations thanks to good performance clothing.It is, however, lag behind the 5.1% increase the previous quarter.
The recurring sales excluding food fit up 6% while sales in food rose 1.5%.
UK retailers worried about the consequences of tax increases and budget cuts announced by the government on June 22 consumption."We had a good start to our fiscal year, but after the recent budget and the measures taken to reduce the deficit, the increase in VAT, we are cautious on the outlook," said Chief Executive.
However, he ruled out a relapse of the British economy in recession and confirmed the target of a stable gross margin for the entire year.
Marc Bolland, who took over the reins of Marks & Spencer last month, confirmed he will present a strategic plan was updated in November.It could however be facing a revolt from some of its shareholders at the general meeting of the week, some investors do not hide their criticism of his pay 15 million pounds (23 million) annually.
The international sales rose 0.9% while those on the internet via M & S Direct have jumped 49%.
Marks & Spencer has underperformed the Stoxx 600 index of European retail sector by 11% since the beginning of this year. The value finished at 352.7 pence on Tuesday in closing a course corresponding to a capitalization of 5.4 billion pounds.
It yields 2.52% at 343.8 pence in morning