Marks & Spencer has seen a 13 per cent increase in profits for the financial year praising a “clear plan and direction” under CEO Marc Bolland.
Underlying profits before tax at the premium retailer rose 12.9 per cent to £714 million, with revenues up 4.2 per cent to £9.7 billion.
M&S profits rose 5.3 per cent in the UK over the 52-week period. Like-for-like UK revenues rose 2.9 per cent in the year to 2 April 2011, despite a sharp slowdown in fourth-quarter general merchandise sales.
Capital expenditure rose to £492m from £389m the year before, as investment in new stores increased from £50m to £151m.
Bolland said: “Marks & Spencer had a good year with sales and profits ahead of last year. We traded well in a challenging environment, growing our market share in both clothing and food. We did this by offering customers great quality and value, and more choice through innovation.
“In November we set out our plan to grow M&S into a truly international, multi-channel retailer. We have made good early progress and are focused on both trading the business in the short term and on delivering against our long term targets.”
M&S chairman Robert Swannell said: “Marks & Spencer has a very clear plan and direction, and management is making good progress at all levels throughout the business…
“We have had a good start to the new financial year but we expect trading conditions in the year ahead to be challenging due to rising pressure on consumers’ disposable incomes and high commodity prices. As a result we are cautious about the outlook.
“While the short-term economic outlook remains challenging, we are confident in the long- term growth prospects of the business. In a climate of economic uncertainty, our priority remains to deliver exceptional value and unrivalled quality for our customers.”
No comments yet