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| Version 2 | Version 3 |
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| M&S faces 'challenging' trading | M&S faces 'challenging' trading |
| (40 minutes later) | |
| Retail giant Marks and Spencer has said that trading conditions will remain "very challenging" after reporting a slowdown in UK sales growth. | Retail giant Marks and Spencer has said that trading conditions will remain "very challenging" after reporting a slowdown in UK sales growth. |
| M&S said UK like-for-like sales - which strip out the impact of new stores - rose 2% in the 13 weeks to 30 June. | M&S said UK like-for-like sales - which strip out the impact of new stores - rose 2% in the 13 weeks to 30 June. |
| The increase was the lowest for nearly two years and compared with growth of 8.2% a year ago. | The increase was the lowest for nearly two years and compared with growth of 8.2% a year ago. |
| The retailer said rising interest rates and "extreme weather" had combined to make trading volatile in the quarter. | The retailer said rising interest rates and "extreme weather" had combined to make trading volatile in the quarter. |
| Tough times | Tough times |
| We believe that the short term trading environment will remain very challenging Stuart Rose, M&S chief executive See M&S's share price class="" href="http://www.bbc.co.uk/blogs/thereporters/robertpeston/2007/07/markss_summer_chill.html">Read Robert Peston's blog | |
| Analysts have been predicting a tougher time for all High Street retailers following five interest rate rises in the past year and with the wettest June on record dampening sales of summer clothes and food. | Analysts have been predicting a tougher time for all High Street retailers following five interest rate rises in the past year and with the wettest June on record dampening sales of summer clothes and food. |
| M&S has enjoyed a renaissance since chief executive Stuart Rose took charge in 2004 - posting a 28.5% increase in annual profit to £965.2m last year - but it has not been able to avoid the tougher trading environment. | M&S has enjoyed a renaissance since chief executive Stuart Rose took charge in 2004 - posting a 28.5% increase in annual profit to £965.2m last year - but it has not been able to avoid the tougher trading environment. |
| "Rising interest rates, general uncertainty over consumer spending, and extreme weather conditions combined to make market conditions particularly volatile over the quarter," Mr Rose said. | "Rising interest rates, general uncertainty over consumer spending, and extreme weather conditions combined to make market conditions particularly volatile over the quarter," Mr Rose said. |
| "We believe that the short term trading environment will remain very challenging, but our plans are unchanged," he added. | "We believe that the short term trading environment will remain very challenging, but our plans are unchanged," he added. |
| Overseas expansion | Overseas expansion |
| M&S said like-for-like sales at its general merchandise division were up 2.9% during the period, while like-for-like food sales rose by just 0.7%. | M&S said like-for-like sales at its general merchandise division were up 2.9% during the period, while like-for-like food sales rose by just 0.7%. |
| Including all stores, clothing sales rose 3.5% over the quarter, the home section saw sales up 13.4% and food sales climbed 8.5%. | Including all stores, clothing sales rose 3.5% over the quarter, the home section saw sales up 13.4% and food sales climbed 8.5%. |
| During the 13 weeks, M&S opened 33 more Simply Food stores, including 21 on BP forecourts. | During the 13 weeks, M&S opened 33 more Simply Food stores, including 21 on BP forecourts. |
| M&S said its international sales had "performed well" over the period with sales rising by 14.8%. | M&S said its international sales had "performed well" over the period with sales rising by 14.8%. |
| It opened 10 stores during the period, including its first stores in Lithuania, Taiwan and Ukraine. | It opened 10 stores during the period, including its first stores in Lithuania, Taiwan and Ukraine. |
| The retailer added that its store modernisation record was on track for it to have 70% of its outlets revamped for the crucial Christmas trading period. | The retailer added that its store modernisation record was on track for it to have 70% of its outlets revamped for the crucial Christmas trading period. |
| However, there was no mention in the trading update about the future of George Davies, designer of the firm's Per Una range. | However, there was no mention in the trading update about the future of George Davies, designer of the firm's Per Una range. |
| Recent reports have suggested Mr Davies - who designed ranges for Next and Asda before joining M&S - is not planning to renew his contract in the autumn. | Recent reports have suggested Mr Davies - who designed ranges for Next and Asda before joining M&S - is not planning to renew his contract in the autumn. |