Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We use cookies to personalise your experience; learn more in our Privacy and Cookie Policy. You can opt out of some cookies by adjusting your browser settings; see the cookie policy for details. By using this site, you agree to our use of cookies.

Pre-tax profits plummet at M&S

Pre-tax profits at Marks & Spencer tumbled by 62% to £66.8m in the year to March 31, which the retailer attributed to one-off costs relating to its store-closure programme.

M&S has been hit by £321.1m in costs as it seeks to close 100 stores over the next four years in a bid to downsize its UK store portfolio and move more of its business online.

Pre-tax profits before one-off items fell by 5.4% to £580.9m for the same period, while revenue edged up 0.7% to £10.7bn. Clothing sales at M&S’s clothing arm fell by 1.9%.

CEO Steve Rowe said: ”At our half-year results in November I outlined the need for accelerated change at M&S. The first phase of our transformation plan, restoring the basics, is now well under way and the actions taken have increased the velocity of change running through our business. These changes come with short term costs which are reflected in today’s results.

“There are a number of structural issues to address and we are taking steps towards fixing these. The new organisation will largely be in place by July and the team is now tackling transforming our culture to make M&S a faster, lower cost, more commercial, more digital business. This is vital as we start to leverage the strength of the M&S brand and values across a family of businesses to deliver sustainable, profitable growth in three to five years.”

M&S is working on a five-year transformation plan under which the retailer will create fewer, but better, clothing and home stores.

Readers' comments (3)

  • If Amazon accelerate their food offering to compete with Marks, it will be carnage.

    Unsuitable or offensive? Report this comment

  • M&S should have woken up to the need for re-alignment of the business strategy stores vs Online digital 3 years ago. Getting back to respectable profit levels will be a huge mountain to climb. Good luck!

    Unsuitable or offensive? Report this comment

  • I agree a lot at M&S needs to change-like focussing on their core customer and not trying to be all things to all people but the bottom line is they are still making profit. Sit back and take it in-MAKING PROFIT.
    Plenty aren't.

    Unsuitable or offensive? Report this comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.