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| M&S clothing sales show 'encouraging' signs of recovery | |
| (about 4 hours later) | |
| Marks & Spencer's clothing sales have begun to recover, it has said, but sales across its wider non-food division fell for the 11th quarter in a row. | |
| Like-for-like sales fell 0.6% in the three months to the end of March. | |
| But, the retailer said there were signs of "encouraging improvement" in clothing sales, with like-for-like sales up 0.6%. | |
| Analysts had expected non-food sales to fall, but by at least 1%. | |
| Like-for-like figures count sales at stores open for more than a year and strip out sales at stores that have only recently opened in order to give a more accurate comparison. | |
| The 0.6% fall in non-food sales was also an improvement on previous quarters. | |
| In the three months to the end of December, which included Christmas, sales declined 2.1%. Sales in the three months to the end of March 2013 fell by 3.8%. | |
| Food sales rose just 0.1% on the same basis. Online sales were up 12.5%. | Food sales rose just 0.1% on the same basis. Online sales were up 12.5%. |
| M&S was one of the top risers on the FTSE 100 Index following the release of the trading statement. Shares rose 2.13% to 465.7p. | M&S was one of the top risers on the FTSE 100 Index following the release of the trading statement. Shares rose 2.13% to 465.7p. |
| But they later went into reverse falling by 1.5%. | |
| Total sales - which count sales across all stores - were 1.5% higher in the first three months of the year. However, taking out stores open less than a year sales fell 0.2%. | Total sales - which count sales across all stores - were 1.5% higher in the first three months of the year. However, taking out stores open less than a year sales fell 0.2%. |
| Womenswear boost | Womenswear boost |
| M&S hired Belinda Earl, the former chief executive of Debenhams and Jaeger, as head of style in 2012. | M&S hired Belinda Earl, the former chief executive of Debenhams and Jaeger, as head of style in 2012. |
| Ms Earl was charged with regenerating Marks' reputation among its core, female fashion customers. | Ms Earl was charged with regenerating Marks' reputation among its core, female fashion customers. |
| The 130-year old retailer launched a new autumn/winter women's fashion range, backed by a large advertising campaign, to boost its flagging clothing sales. | The 130-year old retailer launched a new autumn/winter women's fashion range, backed by a large advertising campaign, to boost its flagging clothing sales. |
| M&S chief executive Marc Bolland, said he was "particularly encouraged by womenswear, which is showing a clear sign of improvement and performed ahead of clothing". | M&S chief executive Marc Bolland, said he was "particularly encouraged by womenswear, which is showing a clear sign of improvement and performed ahead of clothing". |
| He added customers were responding well to the retailer's "refocus on quality and style" and that its new spring/summer fashion range had also been received well. | He added customers were responding well to the retailer's "refocus on quality and style" and that its new spring/summer fashion range had also been received well. |
| Mr Bolland said M&S's food business "outperformed the market once again". | Mr Bolland said M&S's food business "outperformed the market once again". |
| Adjusting for the later timing of Easter this year, M&S said its like-for-like food sales were up 1.8%, with total sales up 4.2%. | Adjusting for the later timing of Easter this year, M&S said its like-for-like food sales were up 1.8%, with total sales up 4.2%. |
| It marked the 18th consecutive quarter of growth in the retailer's food division, which came despite heavy discounting as pressure from rivals grew. | It marked the 18th consecutive quarter of growth in the retailer's food division, which came despite heavy discounting as pressure from rivals grew. |
| 'Green shoots' | 'Green shoots' |
| Most analysts still expect M&S's pre-tax profits to fall 6% to £623m when annual results are published on 20 May. | Most analysts still expect M&S's pre-tax profits to fall 6% to £623m when annual results are published on 20 May. |
| It will mean M&S will have been overtaken for the first time by rival Next - a relative upstart at 32 years old - which last month announced profits of £695m. | It will mean M&S will have been overtaken for the first time by rival Next - a relative upstart at 32 years old - which last month announced profits of £695m. |
| Neil Saunders, managing director of retail analysts Conlumino, said the trading update showed M&S was showing "some green shoots of recovery in its non-food division". | Neil Saunders, managing director of retail analysts Conlumino, said the trading update showed M&S was showing "some green shoots of recovery in its non-food division". |
| "Although the numbers are not spectacular, and they are set against some soft comparatives, they have at least brought to an end a long run period of decline in the clothing business," he said. | "Although the numbers are not spectacular, and they are set against some soft comparatives, they have at least brought to an end a long run period of decline in the clothing business," he said. |
| "It is worth noting that although positive, M&S's latest numbers are not high enough for it to have grown its clothing share; by our calculations M&S has underperformed the market during this period and, as such, has continued to cede share." | "It is worth noting that although positive, M&S's latest numbers are not high enough for it to have grown its clothing share; by our calculations M&S has underperformed the market during this period and, as such, has continued to cede share." |