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Marks & Spencer profits up 12.9% after 'good' year | Marks & Spencer profits up 12.9% after 'good' year |
(40 minutes later) | |
Marks & Spencer says it has defied the retail gloom with a 12.9% jump in annual profits to £714.3m. | |
The profits before tax and one-off items came on sales up 4.2% to £9.2bn, with margins rising in the key clothing and food divisions. | |
Marc Bolland, delivering his first annual figures since taking over as chief executive, said it was a "good year" for M&S. | |
But he is cautious about future trading due to pressures on consumer spending. | |
However, Mr Bolland told the BBC that there were signs customers are trading up and "looking for quality" again. "Price points are rising," he said. | |
The chain runs 600 stores in the UK and 300 overseas, and recently announced plans to move back into France. | The chain runs 600 stores in the UK and 300 overseas, and recently announced plans to move back into France. |
Britain's biggest clothing retailer also said on Tuesday that it would begin testing new store formats from October. These stores will be tailored more to their locations. | Britain's biggest clothing retailer also said on Tuesday that it would begin testing new store formats from October. These stores will be tailored more to their locations. |
Mr Bolland, former boss at supermarket Wm Morrison, described the economic outlook as challenging due to a squeeze on consumer spending and higher commodity prices. | Mr Bolland, former boss at supermarket Wm Morrison, described the economic outlook as challenging due to a squeeze on consumer spending and higher commodity prices. |
Fightback | |
M&S, which sees 21 million customers pass through its doors each week, was hit by the recession when its mid-market positioning left it exposed to consumers moving to rivals. | M&S, which sees 21 million customers pass through its doors each week, was hit by the recession when its mid-market positioning left it exposed to consumers moving to rivals. |
A fightback included initiatives such as its Dine In For £10 promotion, and an advertising campaign featuring X Factor judge Dannii Minogue, former footballer Jamie Redknapp, and model Twiggy. | A fightback included initiatives such as its Dine In For £10 promotion, and an advertising campaign featuring X Factor judge Dannii Minogue, former footballer Jamie Redknapp, and model Twiggy. |
The result has been a increase in clothing market share of 50 points to 11.7%, with growth across all areas. | The result has been a increase in clothing market share of 50 points to 11.7%, with growth across all areas. |
Market share in food rose 10 points to 3.9% after the launch of 1,900 new lines. | Market share in food rose 10 points to 3.9% after the launch of 1,900 new lines. |
M&S also saw international sales increase 6.1%, and sales in the online operation rise 31%. | M&S also saw international sales increase 6.1%, and sales in the online operation rise 31%. |
The company's shares opened 5.5p down at 391.5p. |