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LONDON, Jan 9 (Reuters) - Marks & Spencer's muchvaunted new ranges failed to prevent the British retailer'sclothing sales falling for a tenth consecutive quarter, thoughthe firm avoided a formal profit warning thanks to a solidperformance from food.
The firm did, however, cut its UK gross margin guidance forthe full 2013-14 year to level from previous guidance of a riseof 30 to 50 basis points, reflecting pre-Christmas discounting.
Britain's biggest clothing retailer, which also sellshomewares and food, said on Thursday sales of non-food products,spanning clothing, footwear and homewares, at stores open over ayear fell 2.1 percent in the three months to Dec. 28, its fiscalthird quarter.
That compared with forecasts in a range of flat to down 1.5percent, according to analysts who published estimates after M&Sstepped-up promotional activity in December, and a secondquarter decline of 1.3 percent.
M&S's food business, which contributes over half of groupsales, is performing better. Its sales on the same basis rose1.6 percent versus analysts' forecasts of a rise of 1.1-2.5percent. However, the outcome did represent a slowdown fromgrowth of 3.2 percent in the previous quarter.
