UK high-end food and clothing retailer Marks & Spencer (M&S) has announced that group sales increased through the first half of the year, while net profit slipped.
The group said that sales excluding VAT increased by 2.4 per cent to £4.7bn (€), with total UK food sales up 3.9 per cent on 2010 and overall international sales up 9 per cent.
However, net profit dropped 3.4 per cent to £252.4m (€) from £261.2m (€), hit by lower clothing margins, while pre-tax profit before exceptional items fell 10 per cent to £315.2m.
Operational highlights picked out by the retailer for the first six months of the year included its strong food performance, and the addition of 900 new food lines to its offering.
'Marks & Spencer performed well in the first half,' said Marc Bolland, chief executive of M&S. 'Sales were ahead of last year despite a tough economic environment. Our food business in particular performed strongly. We maintained our share of the clothing and food markets.
'In an increasingly promotional environment, we managed costs tightly and took a decision to invest in giving our customers better value, choosing not to pass on the full extent of the increases in commodity prices,' he added. 'Against a challenging consumer backdrop, we took decisive action to manage the business through the short term while continuing our focus on investing in creating a stronger platform for future growth.'
The second half of the year had started in line with expectations, M&S said, and the group explained that while it remained cautious of its outlook, it was well set up for the coming Christmas period.
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