Marks & Spencer is expected to reveal a significant drop in its international profit on Wednesday as it cuts back on overseas expansion plans and closes shops in eastern Europe.
The retailer will report that international profit dropped by a third in the first half of the financial year, according to the Daily Mail.
M&S’s broker Citigroup said it expected the company to announce flat first-half profit at £270m.
As reported by Drapers last week general merchandise sales are expected to be flat or slightly down, while clothing gross margin will be strong.
Additionally the retailer will exit Croatia, Slovenia, Bulgaria, Serbia and Montenegro, and shut a dozen stores by May 2016. The closures will begin in January.
The withdrawal is part of an overhaul of M&S’s international strategy and will be a blow to its plans to open 250 stores overseas by 2017.