Marks & Spencer has reported its best quarterly performance for two years today, returning better-than-expected sales figures.
The retailer said consumer spending appears to be stabilising sales as its UK like-for-like sales, which exclude new stores, fell 1.4 per cent in the 13 weeks to June 27, compared to 4.2 per cent in the previous quarter, with food down just 0.5 per cent and general merchandise down 2.4 per cent.
When new stores are included, group sales rose 2.9 per cent in the period, while UK sales increased by 1.7 per cent.
It is the retailer's best performance since the second quarter of 2007-08, despite representing the seventh consecutive quarterly declines in sales, and beat analysts' forecasts for a fall of between 1.8 per cent and 3.5 per cent.
M&S has seen its share of the UK's food market fall from 4.3 per cent to 3.9 per cent but its new value range, the timing of Easter and £10 meal deals have stemmed the downward tide in terms of sales.
In May, the company, which celebrates its 125th anniversary this year, announced a 40 per cent fall in annual profits.
Sir Stuart Rose, executive chairman of M&S, said today: "Consumer confidence appears to be stabilising. However, we remain cautious about the outlook for the remainder of this and next year and will continue to run the business accordingly."
Sir Stuart is set to retire from the retailer by 2011 after a turbulent tenure at the retailer and will come under pressure at the retailer’s annual general meeting on July 8.
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