Wednesday July 2, 09:12 AM
Marks And Spencer Suffers Poor Sales
By Sky News
High Street giant Marks & Spencer has reported a big drop in sales in the first three months of its financial year. Its shares fell over 20% on the news - the equivalent of a billion pounds. Its share price fell more than 20% on the news. M&S
has around 21 million customers every week but chief executive Sir Stuart Rose said the economy was in a "very uncomfortable place".Consumers are coming under increasing pressure from rising fuel, food and energy bills, he said. Overall M&S's UK sales were down 5.3% in the 13 weeks to June 28. The surprise update - around a week earlier than expected by analysts - amounts to a profits warning from the group in a worsening retail climate. Its like-for-like sales were down 1.8% in the first first three months of 2008. M&S has also announced the director of food business, Steven Esom, is leaving with "immediate effect". Sir Stuart said the current slowdown was the "third dab of the brakes" seen since last November. The retailer posted profits of £1bn last year and analysts were expecting profits of around £870m this year. But they are likely to lower their forecasts after the latest news. General merchandise sales were down 6.2% on last year and food sales 4.5%. However, the group said it had managed to hold its share in the clothing market.
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