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| Marks & Spencer profits up 12.9% after 'good' year | Marks & Spencer profits up 12.9% after 'good' year |
| (about 9 hours later) | |
| Marks & Spencer says it has defied the retail gloom with a 12.9% jump in annual profits to £714.3m. | 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. | 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. | 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. | But he is cautious about future trading due to pressures on consumer spending. |
| Even so, Mr Bolland told the BBC there were signs that customers were trading up and "looking for quality" again. "Price points are rising," he said. | Even so, Mr Bolland told the BBC there were signs that customers were 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. | 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, selling products selected against five local criteria - affluence, demographics, competition, regionality and ethnicity. | These stores will be tailored more to their locations, selling products selected against five local criteria - affluence, demographics, competition, regionality and ethnicity. |
| The stores would also have improved layouts and signs and better showcase M&S' sub-brands. | The stores would also have improved layouts and signs and better showcase M&S' sub-brands. |
| For example, a town known to have a large number of families might see its local M&S store stocking far more clothes for children. | For example, a town known to have a large number of families might see its local M&S store stocking far more clothes for children. |
| Mr Bolland, the former boss of Morrisons supermarket, described the economic outlook as challenging because of a squeeze on consumer spending and higher commodity prices. | Mr Bolland, the former boss of Morrisons supermarket, described the economic outlook as challenging because of a squeeze on consumer spending and higher commodity prices. |
| However, he said that the recent sharp rise in cotton prices had less impact on M&S than on rivals, many of which sell cheaper goods in which raw materials make up a larger proportion of the price. | However, he said that the recent sharp rise in cotton prices had less impact on M&S than on rivals, many of which sell cheaper goods in which raw materials make up a larger proportion of the price. |
| Fightback | 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%. |
| Analysts at Investec Securities said in a research note that the international arm performed much better than expected, in spite of continued weakness in Greece and the Irish Republic. | Analysts at Investec Securities said in a research note that the international arm performed much better than expected, in spite of continued weakness in Greece and the Irish Republic. |
| M&S shares, which have risen strongly this year, closed down 11.4 pence at 385.6p. |