Q4 Trading Statement

Marks & Spencer Group PLC
11 April 2006

Issued: Tuesday, 11 April 2006


         QUARTER 4 TRADING STATEMENT 2005/6 - 13 weeks to 1 April 2006

  • UK sales +9.1%; general merchandise +9.9%; food +8.4%;
  • UK like for like sales +6.8%; general merchandise +8.2%; food +5.6%;
  • Full price sales of general merchandise +11.6%;
  • 2005/06 profit before tax expected to be in the range of £745 to £755m.

UK sales for the 13 weeks to 1 April 2006 were +9.1% in total with general
merchandise +9.9% and food +8.4%.  Within this clothing was +8.5% and home
+24.0%. Full price sales of general merchandise were +11.6% compared with +5.3%
last quarter. The adjustment for the timing of Easter (March 2005 vs April 2006)
would have added around 0.8% to both general merchandise and food sales.

UK sales for the 52 weeks to 1 April 2006 were +3.4% in total with general
merchandise level on the year and food +7.0%.  Within this clothing was flat and
home +0.8%.

Like for like sales %                       H1                Q3                Q4                Full Year
                                            2005/06           2005/06           2005/06           2005/06

General merchandise                         -6.1              +0.8              +8.2              -1.0
Food                                        +1.6              +5.1              +5.6              +3.6
Total                                       -2.3              +2.9              +6.8              +1.3

This is a strong performance. In general merchandise we continue to focus on
better buying, better values and better styling. Our food business has continued
its strong performance reflecting better innovation and the Simply Food opening
programme.

We are pleased with the customer response to our newly refurbished stores and
plan to roll out the programme across the chain. As a consequence, we have
reassessed the useful economic lives of some of our existing assets to reflect
their earlier replacement. This will give rise to accelerated depreciation of
around £26m in 2005/06.

After taking into account accelerated depreciation, we expect profit before tax
for 2005/06 to be in the range of £745m to £755m. This expected range also takes
into account a one-off discretionary bonus to our customer assistants of £20m
which will take expected bonus payments for the year to around £70m.

Stuart Rose, Chief Executive said:

'We are pleased with the progress we are making but there remains much to do.
The trading environment remains difficult and we do not expect this to improve
in the next financial year. Progress will become more demanding as we start to
come up against growth year on year.'

Guidance for financial year 2006/07:

•    The planned opening of new footage will add around 3% to total space,
     representing a c. 2% increase in general merchandise footage and c. 5% 
     increase in food footage, on a weighted average basis. Total square footage 
     at 1 April 2006 was around 13.1m square feet.

•    Group capital expenditure for 2006/07 is expected to be in the range of
     £520-570m. This includes £28m for the refurbishment of the Iceland stores.

•    Gross margin is expected to improve between 50 to 100bps. This will be
     driven mainly by improvements in general merchandise primary margin from 
     better buying and improved supplier terms.

•    Operating costs, including costs associated with new space and the
     modernisation programme (including accelerated depreciation), but excluding
     provision for bonus payments, are expected to increase by 6% to 7%.  Any 
     bonus payment for 2006/07 will depend on the financial performance of the 
     Group.

Marks and Spencer Group plc's preliminary results for the year to 1 April 2006
will be announced on 23 May 2006.

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.

Contacts:

Investor Relations:
Amanda Mellor                     [phone]
Majda Rainer                      [phone]

Corporate Press Office:           [phone]

Investors & Analysts Conference Call:

This will be hosted by Stuart Rose and Ian Dyson at 08.30 (BST) on Tuesday 11
April 2006:

Dial in number:                   [phone]
                                  0800 358 5260

A recording of this call will be available until Tuesday 18 April 2006:

Dial in number:                   [phone]
Pin number:                       448603#




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