2nd Apr 2015 06:39
LONDON (Alliance News) - Marks & Spencer Group PLC Thursday reported growth in UK and online sales during the fourth quarter of its financial year, but a decline in international sales due to the crisis in Russia and Ukraine and economic issues in Turkey.
The retailer reported 1.6% growth in group sales for the 13 weeks to March 28. It said that food sales grew 3.7% and life-for-like sales grew 0.7%, with record Valentine's Day sales.
General merchandise grew 1.3% and 0.7% on a like-for-like basis, driven by "continued focus on product quality and styling". The company said its spring and summer ranges have been well received by customers.
Total UK sales grew 2.7%, compared with 1.5% for the same period last year, and online sales grew 13.8%. However, international sales declined 6.3% compared with a 4.7% rise the year before.
The company said macro-economic issues with its Russia, Ukraine and Turkey franchise partnership, as well as a further weakening of the Euro have hit profit, but other markets such as India continue to perform well.
"We have made strong progress over the quarter. In food we delivered another excellent performance, with sales growth ahead of the market. We continued to deliver on general merchandise gross margin, and are pleased that we have achieved this whilst also improving general merchandise sales. M&S.com has returned to growth, as planned, with further improvement in customer metrics," Chief Executive Marc Bolland said in a statement.
Marks & Spencer will report its full year results on May 20.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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