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| Marks and Spencer's profits fall for third year | |
| (about 1 hour later) | |
| Marks and Spencer has reported a 3.9% fall in underlying annual profit to £623m, the third consecutive year its profits have fallen. | Marks and Spencer has reported a 3.9% fall in underlying annual profit to £623m, the third consecutive year its profits have fallen. |
| The retailer also said that group sales rose by 2.7% to £10.3bn in the year to 29 March. | The retailer also said that group sales rose by 2.7% to £10.3bn in the year to 29 March. |
| Like-for-like UK food sales, which strip out the effect of new stores, rose 1.7%, while general merchandise - which includes clothing - fell 1.4%. | Like-for-like UK food sales, which strip out the effect of new stores, rose 1.7%, while general merchandise - which includes clothing - fell 1.4%. |
| Chief executive Marc Bolland said M&S had made "solid progress". | Chief executive Marc Bolland said M&S had made "solid progress". |
| "General merchandise is not yet satisfactory. But a lot of the heavy lifting has been done," he told BBC Radio 4's Today programme. | "General merchandise is not yet satisfactory. But a lot of the heavy lifting has been done," he told BBC Radio 4's Today programme. |
| Mr Bolland said that since he took the helm in May 2010, there had been heavy investment to make the retailer "fit for purpose". | |
| "It [rising profit] takes a while to follow. We are improving step by step," he said. | "It [rising profit] takes a while to follow. We are improving step by step," he said. |
| The figures confirm that annual profits at 32-year-old High Street rival Next, which earlier this year reported annual profits of £695m, have overtaken 130-year-old M&S for the first time. | |
| Online growth | Online growth |
| M&S said the clothing market was "challenging" and blamed "unseasonal conditions" and "high levels of promotional activity" for the drop in full year general merchandise sales. | M&S said the clothing market was "challenging" and blamed "unseasonal conditions" and "high levels of promotional activity" for the drop in full year general merchandise sales. |
| However, the firm said its clothing sales had returned to growth in the final three months of the year, marking the first time in three years that sales have increased. | However, the firm said its clothing sales had returned to growth in the final three months of the year, marking the first time in three years that sales have increased. |
| It said it had also now "refreshed" the womenswear departments in its top 70 stores. | It said it had also now "refreshed" the womenswear departments in its top 70 stores. |
| M&S clothing department has been struggling in recent years as sales have fallen. | M&S clothing department has been struggling in recent years as sales have fallen. |
| It hired Belinda Earl, the former chief executive of Debenhams and Jaeger, as head of style in 2012. | It hired Belinda Earl, the former chief executive of Debenhams and Jaeger, as head of style in 2012. |
| Ms Earl was charged with regenerating Marks' reputation among its core, female fashion customers. | Ms Earl was charged with regenerating Marks' reputation among its core, female fashion customers. |
| Marks also said its new website, launched earlier this year, would take four to six months to "settle in". | Marks also said its new website, launched earlier this year, would take four to six months to "settle in". |
| However, it said online sales had risen 23% in the year, outperforming the overall market, with 55% of these purchases now picked up in store. | |
| It said it had also outperformed the overall market on food sales, with the rise in like-for-like sales in the three months to the 29 March marking its 18th consecutive quarter of growth. | It said it had also outperformed the overall market on food sales, with the rise in like-for-like sales in the three months to the 29 March marking its 18th consecutive quarter of growth. |
| International sales rose 6.2% as M&S opened 55 new stores in the year. |