10th Jan 2006 07:01
Marks & Spencer Group PLC10 January 2006 Issued: Tuesday, 10 January 2006 QUARTER 3 TRADING STATEMENT 2005/6 - 13 weeks to 31 December 2005 • UK sales up 4.8%: General Merchandise +2.1%; Food +7.9%; • UK like for like sales up 2.9%; • Full price sales of General Merchandise up 5.3%; • Clearance stocks down 35% on last year UK sales for the 13 weeks to 31 December 2005 were +4.8% in total with GeneralMerchandise +2.1% and Food +7.9%. Within this Clothing was +1.9% and Home+3.8%. Full price sales of General Merchandise were up 5.3% compared with 0.4%last quarter. Like for like sales % Q2 2005/06 Q3 2005/06General Merchandise -0.2 +0.8Food +2.7 +5.1Total +1.3 +2.9 This was an encouraging performance against comparatives which included two "mega-days" last year. The trend improved as the quarter progressed with sales inthe Christmas period being particularly strong. We have made progress across all areas of the business through better buying,better values and tight control of inventory, with around 35% less stock goinginto our post-Christmas clearance than last year. Our Food business had a strongChristmas reflecting the quality and innovation of our ranges. Stuart Rose, Chief Executive said: "This has been an encouraging quarter. Looking ahead, we expect the market toremain challenging. Moreover, we are facing increasing cost pressures. Costs offuel, utilities, rent and rates have risen sharply and will have an impact nextyear. "We remain focussed on product, service and environment. We are undertaking asubstantial programme of store development and expect to have over 30% of ourstore portfolio in the new format by the end of 2006. We are on track againstour plan although there remains much to do." The Board is pleased to announce the appointment of David Michels as anon-executive director with effect from 1 March 2006. David has held a number ofsenior positions in the leisure industry most recently as Group Chief Executiveof Hilton Group plc. He is a non-executive Director of British Land plc. Marks and Spencer Group plc's Q4 trading statement for the 13 weeks to 1 April2006 will be announced on 11 April 2006. 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 08.30 (GMT) on Tuesday 10 January 2006: Dial in number: +44 (0) 20 7162 0025 A recording of this call will be available until Tuesday 17 January 2006: Dial in number: +44 (0) 20 7031 4064Access Code: 689094 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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