Marks & Spencer has experienced a twelfth consecutive turnover drop in its non-food branch. Luckily, it managed a turnover growth in its food branch, with a 2.3 % turnover growth in total.
New website impacts results
Total turnover for clothing grew 0.1 %, but the like-for-like turnover dropped 0.6 %, while CEO Marc Bolland believes the company can turn things around as its new website is currently impacting the results: "We have seen a continued improvement in Clothing, although as anticipated the settling in of the new M&S.com has had an impact on sales."
According to analysts, website sales are currently lower because of the fact that customers have to register again and have to get used to the site. CEO Bolland predicted this would take some 6 months and M&S.com's turnover has dropped 8.1 % in the first quarter.
The turnover in the UK grew 2.0 % (and a 0.3 % like-for-like turnover growth), while international turnover grew 4.7 %. Food sales grew 4.2 %, while its like-for-like turnover grew 1.7 %, mainly thanks to a late Easter this year. If that period is taken into account, turnover grew 2.6 % and like-for-like turnover only grew 0.1 %.