11th Oct 2005 07:01
Marks & Spencer Group PLC11 October 2005 Issued: Tuesday, 11 October 2005 QUARTER 2 TRADING STATEMENT 2005/6 - 12 weeks to 1 October 2005 • UK Retail sales up 3.3%: General Merchandise +0.4%; Food +6.3%; • UK Retail like for like sales up 1.3%; • Full price sales* of General Merchandise up 0.4%; • Unaudited Group profit before tax and exceptionals for the 26 weeks to 1 October 2005 is expected to be at or around the upper end of market expectations. UK Retail Sales for the 12 weeks to 1 October 2005 were +3.3% in total withGeneral Merchandise +0.4% and Food +6.3%. Within this Clothing was +0.2% andHome +2.1%. Like for like sales were up 1.3% in total compared with a decrease of 5.4% lastquarter. General Merchandise like for like sales were down 0.2% against adecrease of 11.2% last quarter. Food like for like sales were up 2.7% comparedwith an increase of 0.7% last quarter. Full price sales of General Merchandisewere up 0.4% against a decrease of 2.4% last quarter. Our focus is on profitable full price sales, better buying and tight control ofstocks and costs. We are committed to offering outstanding value, styling andservice in a pleasant environment. We have concentrated on improving values aswell as introducing better product and more newness. Customer reaction to ourAutumn ranges has been positive. Our focus on rebuilding our Home business isshowing through. Food continues to make progress and has delivered anotherquarter of like for like growth, driven by product innovation and availability.Customer perceptions of product and service have improved. This has beenreinforced through our focussed advertising campaign for Food and Womenswear. We expect unaudited Group profit before tax and exceptionals for the 26 weeks to1 October 2005 to be at or around the upper end of market expectations. Theoutlook for the full year profit performance will depend on trading in theimportant third quarter. On Charles Wilson's departure on October 28th all responsibility for IT,Logistics and Property will pass to Ian Dyson, Finance Director. Stuart Rose, Chief Executive said: "This is an encouraging performance, but there remains much to be done. Theenvironment remains very difficult and we have the important Christmas tradingperiod ahead. We are making progress. We are listening to our customers andfeedback has been positive. The product is getting better, our stores arelooking better. We are offering our customers better value. This will remain ourfocus." * non-clearance sales Marks and Spencer Group plc's Interim Results for the 26 weeks to 1 October 2005will be published on 8 November 2005. Statements made in this announcement that look forward in time or that expressmanagement's beliefs, expectations or estimates regarding future occurrences andprospects are "forward-looking statements" within the meaning of the UnitedStates federal securities laws. These forward-looking statements reflect Marks &Spencer's current expectations concerning future events and actual results maydiffer materially from current expectations or historical results. Any suchforward-looking statements are subject to various risks and uncertainties,including failure by Marks & Spencer to predict accurately customer preferences;decline in the demand for products offered by Marks & Spencer; competitiveinfluences; changes in levels of store traffic or consumer spending habits;effectiveness of Marks & Spencer's brand awareness and marketing programmes;general economic conditions or a downturn in the retail or financial servicesindustries; acts of war or terrorism worldwide; work stoppages, slowdowns orstrikes; and changes in financial and equity markets. Contacts:Investor Relations:Amanda Mellor +44 (0)20 8718 3604Sarah McGlyne +44 (0)20 8718 1563Corporate Press Office: 020 8718 1919 Investors & Analysts Conference Call: This will be hosted by Stuart Rose at 08.20 (BST) on Tuesday 11 October 2005:Dial in number: +44 (0) 20 7162 0083 A recording of this call will be available until Tuesday 18 October 2005:Dial in number: +44 (0) 20 7031 4064Access Code: 678099 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Marks & Spencer