By Simon Zekaria Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Marks & Spencer Group PLC (MKS.LN) Wednesday said it has made a good start to the year after reporting a 3.6% rise in first-quarter sales, but the U.K. retailer remains cautious about the outlook in the face of macroeconomic headwinds. The food, clothing and homeware retailer, often viewed as a bellwether for U.K. consumer sentiment, said sales from stores open at least a year rose 3.6% in the 13 weeks to July 3 from a year earlier, which excludes Easter trading. This compares with a 5.1% rise in the fourth quarter last year and a 0.8% rise in the third quarter. "Marks & Spencer has delivered another good sales performance in the first quarter," Chief Executive Marc Bolland said. Marks & Spencer's food business posted a 1.5% increase in same-store sales. Its general merchandise division booked a 6% rise. First-quarter group sales rose 4.4% year-on-year. U.K. sales rose 4.8% and international sales were up 0.9%. Online sales rose 49%. At the end of May, the group declared that the worst of the U.K. recession was over as it posted higher annual profits and sales, including the first rise in food sales since 2007. However, retailers are concerned that spending cuts, combined with a higher tax on sales of goods, will hit consumer sentiment. Economists also warn that factors including inflationary pressure and concerns about job security could keep consumer spending muted in the coming months. Marks & Spencer shares closed Tuesday at 353 pence, valuing the company at GBP5.58 billion. By Simon Zekaria, Dow Jones Newswires; +44 207 842-9410; simon.zekaria@dowjones.com (END) Dow Jones Newswires July 07, 2010 02:14 ET (06:14 GMT)
Marks & Spencer (MKS)