REG - Marks & Spencer Grp - Interim Management Statement <Origin Href="QuoteRef">MKS.L</Origin>

Marks and SpencerAnnouncement

06/09/2014 02:41

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RNS Number : 6922L
Marks & Spencer Group PLC
08 July 2014 
 
Issued:  8 July 2014 
 
MARKS AND SPENCER GROUP PLC 
 
QUARTER 1 2014/15 TRADING STATEMENT 
 
13 weeks to 28 JUNE 2014 
 
'Womenswear in growth' 
 
·    Group sales1 +2.3% 
 
·    UK: total sales +2.0%, like-for-like +0.3% 
 
·    GM: total sales -0.8%, like-for-like -1.5% 
 
·    Clothing: total sales +0.1%, like-for-like -0.6% 
 
·    Food2: total sales +4.2%, like-for-like +1.7% 
 
·    M&S.com -8.1% 
 
·    International sales1 +4.7% 
 
1Stated on ex-VAT and constant currency basis. International sales at actual
currency were +0.1% on the year for the quarter. 
 
2 Adjusting for impact of later Easter timing, total Food sales were +2.6%,
like-for like +0.1% 
 
Marc Bolland, Chief Executive said: 
 
"We have seen a continued improvement in Clothing, although as anticipated the
settling in of the new M&S.com site has had an impact on sales. We are pleased
that the Womenswear business was in growth, driven by full price sales, in
line with our increased focus on margin. Our Food business had another great
quarter, continuing to outperform the market, through our focus on
differentiation through quality and innovation." 
 
Trading summary 
 
Womenswear sales were up as a result of stronger full price sales and uplift
from seasonal and fashionable products.  In General Merchandise, we are
continuing to see progress in our Clothing business with customers
increasingly buying into the improvements we have made to quality and style.
In line with our increased focus on margin, we were less promotional, both
online and in stores. While this has affected the sales performance,
particularly online, we are on track to deliver our full year gross margin
guidance. 
 
As anticipated, General Merchandise sales were impacted by the settling in of
the new .com site. The new web platform has been technically resilient and we
have received positive customer feedback on the website's enhanced fashion and
style content. As previously indicated, we are now focussed on optimising the
website commercially, with updates made on a regular basis. We have recently
seen a gradual improvement in sales performance, despite a lower level of
promotional activity. We expect to return to growth ahead of our peak trading
period. 
 
Our Food business had a great quarter with our strategy to be more specialist
setting us apart from the competition. We continue to outperform the market as
customers continue to come to us for unrivalled quality and innovation,
whether for their special events or great everyday value.  With value top of
mind for customers, we remained price competitive while protecting our gross
margin. We launched some 700 new products giving customers more choice than
ever. We are on track with the pipeline of 150 new Simply Food stores opening
over the next three years. 
 
Our International business continued to perform well, with particularly strong
performance in our priority markets. Trading conditions in the Republic of
Ireland continue to be challenging. Sales performance in the Middle East was
impacted by the timing of shipments to our franchise partners. 
 
Guidance and outlook 
 
Our full year guidance remains unchanged. Despite some improvement in consumer
confidence, market conditions remain challenging. Our focus is on delivery in
order to make M&S a stronger and more profitable business. 
 
Marks and Spencer Group plc will report its second quarter trading and half
year results on 5 November 2014. 
 
Statements made in this announcement that look forward in time or that express
management's beliefs, expectations or estimates regarding future occurrences
and prospects are "forward-looking statements" within the meaning of the
United States federal securities laws. These forward-looking statements
reflect Marks & Spencer's current expectations concerning future events and
actual results may differ materially from current expectations or historical
results. Any such forward-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; competitive influences; changes in levels of customer 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 services industries; acts of war or terrorism worldwide;
work stoppages, slowdowns or strikes; and changes in financial and equity
markets. 
 
- Ends - 
 
For further information, please contact: 
 
Investor Relations: 
 
Majda Rainer                         +44 (0)20 8718 1563 
 
Helen Cox                              +44 (0)20 8718 8491 
 
Corporate Press Office:       +44 (0)20 8718 1919 
 
Out of hours calls:                  +44 (0)20 8718 2000 
 
This information is provided by RNS
The company news service from the London Stock Exchange