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M&S sales squeezed as men shun skinny trousers | M&S sales squeezed as men shun skinny trousers |
(about 3 hours later) | |
M&S said it overestimated demand for tight-fitting men's clothing in the run-up to Christmas. | M&S said it overestimated demand for tight-fitting men's clothing in the run-up to Christmas. |
As a result, the High Street retailer said it had ordered more "regular" and "relaxed-fit" clothing for spring. | As a result, the High Street retailer said it had ordered more "regular" and "relaxed-fit" clothing for spring. |
M&S boss, Steve Rowe, said "disappointing" issues, such as the surplus of skinny menswear, held the firm back from a stronger performance over Christmas. | M&S boss, Steve Rowe, said "disappointing" issues, such as the surplus of skinny menswear, held the firm back from a stronger performance over Christmas. |
Weak sales in clothing and homeware were offset by higher food sales. | |
Too much food | Too much food |
However Mr Rowe said M&S did have issues with the "waste and supply chain" in its food department over Christmas. | However Mr Rowe said M&S did have issues with the "waste and supply chain" in its food department over Christmas. |
The retailer said it ordered too much food in the final two weeks before the big day. | The retailer said it ordered too much food in the final two weeks before the big day. |
Meanwhile, an overly complex supply chain meant that food spent more time in the delivery system and less time on shelves. | Meanwhile, an overly complex supply chain meant that food spent more time in the delivery system and less time on shelves. |
Nevertheless, like-for-like food sales, which exclude takings from new stores, increased by 1.4% in the final 13 weeks of 2019. | Nevertheless, like-for-like food sales, which exclude takings from new stores, increased by 1.4% in the final 13 weeks of 2019. |
However, that growth was largely offset by a dip in the home and clothing departments at M&S. | However, that growth was largely offset by a dip in the home and clothing departments at M&S. |
The firm said customers were also more conservative when giving presents over Christmas. | The firm said customers were also more conservative when giving presents over Christmas. |
'One-off issues' | 'One-off issues' |
M&S said fewer customers bought items from its gift range, which includes things that could be considered token presents, such as fragrance sets. | M&S said fewer customers bought items from its gift range, which includes things that could be considered token presents, such as fragrance sets. |
As a result, like-for-like sales at M&S climbed just 0.2% in the final months of the year. | As a result, like-for-like sales at M&S climbed just 0.2% in the final months of the year. |
"Disappointing one-off issues - notably waste and supply chain in the food business, the shape of buy in menswear and performance in our gifting categories - held us back from delivering a stronger result," said Mr Rowe. | "Disappointing one-off issues - notably waste and supply chain in the food business, the shape of buy in menswear and performance in our gifting categories - held us back from delivering a stronger result," said Mr Rowe. |
However, the firm outperformed rivals Tesco and Sainsbury's, both of which saw sales slip during a similar period. | However, the firm outperformed rivals Tesco and Sainsbury's, both of which saw sales slip during a similar period. |
Richard Lim, the boss of analyst firm Retail Economics, said M&S could be showing signs of recovery after what was a tough year for the business, which dropped out of the FTSE 100 in September. | Richard Lim, the boss of analyst firm Retail Economics, said M&S could be showing signs of recovery after what was a tough year for the business, which dropped out of the FTSE 100 in September. |
"Food performed particularly well, benefiting from stronger underlying household finances, but consumers also responded positively to more competitive pricing," he said. | "Food performed particularly well, benefiting from stronger underlying household finances, but consumers also responded positively to more competitive pricing," he said. |
"While clothing and home lagged overall growth, it still improved on previous performances." | "While clothing and home lagged overall growth, it still improved on previous performances." |
But investors were disappointed by the result. | But investors were disappointed by the result. |
Shares in the M&S fell by as much as 11.2% after it revealed its results on Thursday. | Shares in the M&S fell by as much as 11.2% after it revealed its results on Thursday. |
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