M&S says annual profits tumble on restructuring

M&S profits plunge 62pc amid sweeping store closure plans

M&S wants to move a third of its sales online and plans to have fewer, larger clothing and homeware stores in better locations.

The retailer had a total of 1,035 United Kingdom stores at the end of its 2017/2018 financial year.

Marks & Spencer (M&S), one of the best known names in United Kingdom retail, first said it would reduce the amount of store space devoted to clothing and homewares in 2016, shortly after company lifer Steve Rowe became chief executive.

Excluding the restructuring charge, the stores group's adjusted pre-tax profit was down 5.4% to £580.9mln from £613.8mln past year, weighed by a 140 basis points drop in the food gross margin as a result of a weaker pound pushing up input cost inflation. Actions taken under the plan include the sale and franchise of the firm's retail business in Hong Kong and Macau.

M&S profits plunge 62pc amid sweeping store closure plans
M&S says it must accelerate change or fade away

The retailer's troubled clothing arm saw like-for-like sales fall by 1.9 per cent in the year.

Shares in M&S were down 3 percent at 1017 GMT. M&S attributed this decline to the planned removal of two clearance sales and unseasonal trading conditions during the second half of the year.

"These, together with a challenging United Kingdom consumer market, mean that we have to modernise our business to ensure we are competitive and reignite our culture".

In a statement the British retailer said that prices will be slashed by an average of 24% with no compromise on the trusted, M&S quality and sourcing standards customers know and love.

More news: Suicidal Thoughts, Attempts On The Rise Among Young People: 'It's A Critical Public-Health Crisis Right Now'

"Changes in the high street and migration online mean that we have to be decisive with our store estate, renewing and closing stores more quickly".

Marks & Spencer has said that it is "facing facts" and rapidly accelerating its "radical" transformation plan after revealing yet another fall in annual profits.

The company is seeking to reduce costs by at least £350 million, although its dividend will be maintained at its current level.

Currently, around 18 percent of M&S' clothing and home sales are made online.

More news: Nintendo Announces 'Mario Tennis Aces' Pre-Launch Tournament Demo

There are a number of structural issues to address and we are taking steps towards fixing these.

"The team is now tackling transforming our culture to make M&S a faster, lower cost, more commercial, more digital business", he said, targeting sustainable, profitable growth in three to five years.

More news: Google will remind the user to stop watching videos on YouTube

Related:

Comments

Latest news

Why Maddie Poppe & Caleb Lee Hutchinson Kept Their 'American Idol' Romance Secret
"I'm just wondering, is there a special significance to the song when you sing it with Maddie? " he added. American Idol made its big return to television and it had a pretty interesting finale.

Baltimore County officer killed in line of duty, authorities say
Larry Hogan tweeted following early reports of the incident to offer prayers to the "brave officer's family". Kurek said his other son, a volunteer firefighter, performed CPR on her while they called 911.

Voting chief concerned about turnout for Primaries
Anyone with questions about the election should call the Tarrant County Elections Office at 817-831-8683. Tiara Chambliss is voting in her first primary on Tuesday, and a few issues are drawing her to polls.

Star Wars boss wants to give Lando his own movie after all
So you can bet Lucasfilm is looking to diversify their roster of lead characters by letting Lando Calrissian lead the way. Premiere blames a miscommunication between Kennedy and the interviewer for the previous erroneous quote.

Hawaii volcano eruption: Damage in pictures
It comes after more than a dozen fissures recently opened miles to the east of the crater and spewed lava into neighbourhoods. Earlier it was reported that in Hawaii declared the highest alert level due to increased eruption of Kilauea volcano.

Google guns for Spotify with new music-streaming service — YouTube Music
Google , YouTube's parent company, hopes the new streaming service will boost its position in the global music streaming market. GOOGLE'S CONSTANT quest to avoid atrophy has resulted in a lot of duplication, and YouTube Premium is the latest example.

'PUBG Mobile' Gets Miramar, Local Quick Teams, and More
Do you need help choosing the best battle royale game ? In fact, a huge PUBG Mobile update just arrived with tons of new content. The addition of the Miramar map is the big-ticket item in the latest update, which also adds several new weapons and vehicles.

Planned Iran sanctions, tight supply send oil to new multi-year high
The tightening market has all but eliminated a global supply overhang which depressed crude prices between late 2014 and early 2017.

Ebola outbreak: Doctors scramble to distribute vaccine as deadly disease returns
The virus is then passed between humans through blood or bodily fluids, like saliva, sweat, urine, semen, or breast milk. The country has experienced eight Ebola outbreaks over the past four decades.

Arsenal boss Arsene Wenger reveals his special India connect
Yet the fine form of Aubameyang since his January arrival encouraged Wenger to claim he has left Arsenal in good hands. But it's the way Wenger has got his Arsenal players thinking that the 68-year-old wants to be mainly remembered for.

Nawaz Sharif's Defiance Shows He Is Not Ready To Spare Pakistani Army
The participants termed the remarks as contrary to the facts and said that Indian government didn't present evidence for investigation.

Vasyl Lomachenko Gets Tested By Jorge Linares, Scores Big KO
In contrast, Linares moves well with his feet and at the waist, but can be often caught out by going back in straight lines. Linares landed a right hand that stopped Lomachenko from moving forward with just under 40 seconds left in the eighth.

Europe Moves To Safeguard Iran's Interests After US Pullout
Responding to a question, Bolton said that the leadership of the previous Obama administration lied to the American people. On Tuesday Mr Trump announced he would pull out the Iran deal sparking fears about the future of the region.

Lewis Hamilton and Sebastian Vettel Stand United Against 2019 F1 Regulations
Red Bull's Christian Horner has already blasted the "half baked" new front wing design meant to boost overtaking next year. Verstappen also went off the track, as did Raikkonen shortly before enduring the mechanical problem.

Homeland Security Director Kirstjen Nielsen Nearly Resigns After Trump Blow Up
Two senior White House officials described Nielsen as upset after the meeting, but said they were unaware of such a letter or threats to resign.

Other news