Marks & Spencer Share News (MKS)

Marks & Spencer reported another decline in first-quarter like-for-like (LFL) growth, which it blamed on the impact of its new website and fewer promotions, though the company expressed confidence in improving trends in clothing, particularly womenswear.Group sales on a constant currency basis increased by 2.3% in the 13 weeks to June 28th, helped by 2% growth in the UK and a 4.7% improvement overseas.However, LFL growth in the UK was just 0.3% as the continuing strength in Food, up 1.7%, was mostly offset by a 1.5% decline in its General Merchandise (GM) division, more or less in line with analysts' estimates.Despite the 0.6% fall in overall clothing, womenswear sales grew during the period on the back of stronger full-price sales and an uplift from seasonal and fashionable products. "We have seen a continued improvement in clothing, although as anticipated the settling in of the new M&S.com site has had an impact on sales," said Chief Executive Marc Bolland.M&S said it has received positive customer feedback on the new website, which has a greater focus on fashion and style, and has recently seen a improvement in sales. "We expect to return to growth ahead of our peak trading period."GM sales were also held back by less promotional activity, both online and in stores, in an effort to maintain margins.Looking ahead, the company said: "Our full-year guidance remains unchanged. Despite some improvement in consumer confidence, market conditions remain challenging. Our focus is on delivery in order to make M&S a stronger and more profitable business."BC