For the first time in 4 years' time, the British chain Marks & Spencer has managed higher profits for a full fiscal year. As a result, it will buy back a sizeable number of shares.
Online turnover drops
Marks & Spencer's numbers have not shown any numbers in red when it comes to the most important numbers in its financial results: turnover grew 0.4 % in the past fiscal year (ending on 28 March), to 10.3 billion pounds (14.5 billion euro) and pre-tax profits grew 6.1 % to 661.2 million pounds (920 million euro).
Not all was well for Marks & Spencer: its online turnover dropped 2 % and its operational profit in foreign markets got pummeled 25 % to barely 92 million pounds (125 million euro), largely because of the difficult Russian situation.
Its clothing department had to deal with a 2.5 % turnover drop (- 3.1 % on a like-for-like basis), but its food department made up for the loss as turnover there grew 3.4 % (+ 0.6 % on a like-for-like basis). In the last quarter of its previous fiscal year, it also managed a turnover growth in its clothing department.
The good results have prompted the chain to buy back 150 million pounds' (210 million euro) worth of shares, the first time since 2007 that Marks & Spencer has done so.