LONDON (Alliance News) - Marks & Spencer Group PLC on Thursday reported a fall in group sales in the first quarter of its financial year but said its guidance remains unchanged for the full year.
The food, clothing and homeware retailer said group sales in the 13 weeks ended July 2 fell 0.4% year-on-year, as 4.0% growth in the Food division was wiped out by an 8.3% decline in the Clothing & Home division. On a constant-currency basis, sales for the group were down 0.9%.
Initially Thurday, M&S said group sales had risen 1.3% in the period and were up 0.2% on a constant-currency basis but later Thursday issued a correction to these figures.
On a like-for-like basis, Clothing & Home sales were down 8.9%, while food sales fell 0.9%. This resulted in overall UK like-for-like sales declining 4.3%. International sales were up 0.7%.
M&S said its new Simply Food stores continued to perform ahead of its expectations, while clothing & home was hit by a "weak market". Clothing & home sales also suffered from the retailer's decision to run fewer price promotions, while lowering everyday prices.
M&S said its full-year guidance remains unchanged.
"As highlighted in May, consumer confidence weakened in the run up to the EU referendum. While it is too early to quantify the implications of Brexit, we are confident that our strategic priorities and the actions we are taking remain the right ones to deliver results for our customers and our business," Chief Executive Steve Rowe said in a statement.
Marks & Spencer shares were down 1.4% to 290.00 pence on Thursday afternoon.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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