Q1 Interim Management Statement

RNS Number : 8568I

Marks & Spencer Group PLC

09 July 2013

 



Issued: 9 July 2013

MARKS AND SPENCER GROUP PLC

QUARTER 1 2013/14 INTERIM MANAGEMENT STATEMENT

13 weeks to 29 JUNE 2013

'Some progress in General Merchandise and an excellent performance in Food'

·   Group sales                 +3.3% *

·   Total UK sales             +2.7%:Food +4.5%; GM +0.5%

·   Like-for-like UK sales +0.3%:Food +1.8%; GM -1.6%

·   International sales       +8.7% *

·   M&S.com sales           +29.9%

Marc Bolland, Chief Executive said:

"Our General Merchandise business showed some improvement this quarter and the Food business delivered another excellent performance, continuing the strong underlying trend.

"Our International business also performed well during the quarter and M&S.com sales were very strong.

"We continue to make good progress with our plans to transform M&S into an international, multi-channel retailer."

Trading summary

In General Merchandise we have seen some improvement, despite difficult trading conditions and further intensification of promotional activity in the market. Tight management of the business has resulted in a clean stock position at the end of the quarter. Our new Autumn/Winter collection will start to arrive in stores and online from the end of July with a full launch in September.

* Stated on constant currency basis. At actual currency, International sales were +11.6% and Group sales +3.6%.

Our Food business had another excellent quarter. Sales grew well ahead of the market, as customers chose us as the destination shop for special occasions as well as everyday quality they can trust. Our operational execution continues to improve, delivering further increases in availability.

Our International business performed well across most of the markets we trade in, especially in our key markets of India, China and the Middle East. While the macro-economic issues in some parts of Europe are still impacting sales, our performance in this region has started to stabilise in some areas.

M&S.com had a very strong quarter, with customers responding well to the improvements made to the service proposition such as free next day delivery to stores.  Our new web platform is on track to launch in Spring 2014.

Outlook

Given the challenging trading conditions, we remain cautious about the outlook and continue to manage the business tightly.

Marks and Spencer Group plc will report its half year results on 5 November 2013.

                                                      - Ends -

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 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 services industries; acts of war or terrorism worldwide; work stoppages, slowdowns or strikes; and changes in financial and equity markets.

For further information, please contact:

Investor Relations:      

Majda Rainer                           [phone]

Richard Harris                         [phone]

Corporate Press Office:           [phone]

Out of hours calls:                   [phone]

 

END

 

 

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