Marks & Spencer has had a disappointing quarter as growth in food sales was overturned by a bigger decrease in non-food sales. Especially menswear and gifts stayed under the expected turnover.
Menswear stays behind
In the third quarter of the chain's financial year, which ended 28 December 2019, M&S had to admit a turnover decrease of 0.7 % to 3.02 billion pounds (3.4 billion euros) compared to the same period a year earlier. Revenue fell both in the United Kingdom (- 0.6 %) and internationally (- 2.3 %).
British food revenue went up 1.5 % to 1.7 billion pounds (2 billion euros), but revenue from 'Clothing & Home' dropped 3.7 % to 1.06 billion pounds (1.4 billion euros) as menswear and gifts were "underperforming", the chain announced in a press release. Online sales also stayed below expectations, with only a 1.5 % sales growth. The chain pointed to "sharper value and more relevant innovation" at competitors.
While Marks & Spencer maintains its earlier forecast, the chain warns that its margins will most likely find themselves at the bottom side of the expectations fork.