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| Marks and Spencer reports 9.7% fall in profits | Marks and Spencer reports 9.7% fall in profits |
| (35 minutes later) | |
| Marks and Spencer, the UK's biggest clothing retailer, has posted pre-tax profits of £290m for the six months to the end of September, down 9.7% from the same period last year. | Marks and Spencer, the UK's biggest clothing retailer, has posted pre-tax profits of £290m for the six months to the end of September, down 9.7% from the same period last year. |
| Group sales were up 0.9% to £4.7bn, with much of the growth coming from the food side of the business. | Group sales were up 0.9% to £4.7bn, with much of the growth coming from the food side of the business. |
| Food sales were up 3.4%, or 1.1% on a like-for-like basis, which strips out the effect of new stores. | Food sales were up 3.4%, or 1.1% on a like-for-like basis, which strips out the effect of new stores. |
| Clothing and homeware like-for-like sales, were down 4.3%, href="http://corporate.marksandspencer.com/page.aspx?pointerid=65f500a6ba5549e3bf7b45991db6dc83" >M&S said. | |
| Chief executive Mark Bolland said: "We are pleased to report a better performance across the business in the second quarter. | Chief executive Mark Bolland said: "We are pleased to report a better performance across the business in the second quarter. |
| "We took steps to address the short term merchandising issues in General Merchandise [clothing and homeware] and as a result, we delivered an improved performance. | "We took steps to address the short term merchandising issues in General Merchandise [clothing and homeware] and as a result, we delivered an improved performance. |
| "Food outperformed the market on a like-for-like basis," he said. | "Food outperformed the market on a like-for-like basis," he said. |
| M&S said that the market had been challenging due to the bad weather, weak consumer confidence and pressure on customers' disposable incomes. | |
| And the summer's major events had little or no effect on sales, M&S said. | |
| "While the Jubilee and the Olympics improved the nation's mood, they did not translate into higher sales." | |
| International sales were up 3.6% on a constant currency basis, with strong growth in China and India. | |
| "The latest results from M&S are something of a mixed bag", said Neil Saunders, managing director of retail consultancy, Conlumino. | |
| "While the overall half year numbers look anaemic, there has been a material uplift in fortunes since the first quarter with even general merchandise moving into positive growth territory on a overall basis." | |
| While the group had benefited from improved High Street trading conditions and revamped stores, Mr Saunders warned that "it remains too early to call whether M&S is back on the path to sustainable growth." | |
| Management shake-up | |
| On Monday, chief executive Mark Bolland announced further management changes, with Frances Russell, a former director of Philip Green's Arcadia, moving up to director of womenswear, replacing Annette Browne, who has left the company. | |
| Janie Schaffer, currently chief creative officer at Victoria's Secret, will succeed Frances Russell as director of lingerie and beauty early next year. | |
| The latest shake-up follows the appointment of John Dixon in October, who moved from food to become the head of general merchandise, replacing Kate Bostock. | |
| In May, M&S reported its first fall in annual profits for three years, with pre-tax profits for the year to the end of March down 16% to £658m |