Marks & Spencer’s boss fails to halt the high street chain’s decline after a dip in earnings during his first year
M&S clothing and home range has seen a rapid decline in sales despite being promoted by Rosie Huntington-Whiteley
MARKS & SPENCER has run out of excuses, it was warned after a dip in earnings in its new boss’s first full year in charge.
The high street chain now needs drastic action as profits slid 63.5 per cent to £176.4million, down from £488.8million the year before.
Chief exec Steve Rowe blamed one-off restructuring costs, but even with these stripped out its earnings were still down 11 per cent.
Like-for-like sales in the period to April 1 fell 1.9 per cent. Mr Rowe, an M&S lifer who started as a Saturday boy aged 16, took charge of the business last April.
He was hailed as a potential saviour after years of declining profits.
But he admitted his ambitious turn-around plan, which included closing failing stores, and focusing on its food offering has “come with a cost”.
Its clothing and home division, promoted by models such as Rosie Huntington-Whiteley, is still dragging the business.
Like-for-like sales fell 3.4 per cent over the year and 5.9 per cent in its last three months.
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But even its food, seen as its major strength, suffered a full-year sales fall of 0.8 per cent.
Mr Rowe insisted that the group’s “self-help” measures would help it ride out tougher trading, saying:
“We’ve got much more to do but we’re on track.”
City analysts were less kind. John Ibbotson, of consultancy RETAIL VISION, said: “M&S has run out of excuses. No amount of stammering about the mild winter or the weak Pound can mask the fact these results are awful.”
He welcomed the appointment of ex ASDA chief Archie Norman as new chairman, saying “drastic action” was needed.