This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/business/2014/apr/10/marks-and-spencer-clothing-sales-recover

The article has changed 3 times. There is an RSS feed of changes available.

Version 0 Version 1
Marks & Spencer's clothing sales recover Marks & Spencer's clothing sales recover as style focus pays off
(about 1 hour later)
Marks & Spencer's efforts to turn fashion sales around have paid off, with clothing sales recovering in the last quarter, helped by women's clothes. Marks & Spencer's efforts to revamp its women's clothes collection have begun to pay off, with clothing sales recovering in the last quarter.
But overall UK like-for-like sales slipped 0.2%, and the retailer warned that promotions would drag down profit margins in the UK. Shares in M&S rose 2.5% in early trading. Like-for-like clothing sales rose 0.6% in the last three months, ending many quarters of decline.
The chief executive, Marc Bolland, who took the helm four years ago, said womenswear was showing "clear signs of improvement", lifting total clothes sales 1.3% in the 13 weeks to 29 March, the chain's fourth quarter. They were up 0.6% on a like-for-like basis. The chief executive, Marc Bolland, who has been under growing pressure to revive the retailer's lacklustre performance since taking the helm four years ago, said womenswear was showing "clear signs of improvement", with total clothes sales 1.3% higher in the 13 weeks to 29 March, the chain's fourth quarter. M&S has signed up singer Annie Lennox, actress Emma Thompson and campaigner Baroness Lawrence for its cast of 'leading ladies' – its second advertising campaign photographed by Annie Leibovitz – to promote its spring and summer womenswear collection.
"Customers are responding well to our refocus on quality and style," Bolland said. "Sales of M&S collection in womenswear, which was relaunched last autumn, were notably up on last year. Our new spring/summer collection has been well received, with customers noticing the improving style credentials." While the upturn in clothes sales was welcomed by City analysts, general merchandise, which also includes homewares, dropped for the 11th quarter in a row, slipping 0.6% on a like-for-like basis, and the retailer warned that promotions would drag down profit margins.
Recent research showed that M&S has struggled to rebuild its popularity with its core 25-55 age group and the over-55s, but has made some gains among 12- to 34-year-olds. Bolland said customers were responding well to the company's refocus on quality and style. He added: "Sales of M&S collection in womenswear, which was relaunched last autumn, were notably up on last year. Our new spring/summer collection has been well received, with customers noticing the improving style credentials."
Maureen Hinton, a retail analyst at the City firm Conlumino, tweeted: "M&S showing signs of improvement at last with clothing up slightly +1.3% and womenswear in particular."Maureen Hinton, a retail analyst at the City firm Conlumino, tweeted: "M&S showing signs of improvement at last with clothing up slightly +1.3% and womenswear in particular."
Group sales climbed 1.9% in the last three months, but the breakdown reveals that food sales were little better than flat (up 0.1% on a like-for-like basis) while general merchandise, which includes clothes and homeware, slipped 0.6% on a like-for-like basis, the 11th quarter in a row sales have fallen. Recent data from Kantar showed that M&S has struggled to rebuild its popularity with its core 25-55 age group and the over-55s, but has made some gains among 12- to 34-year-olds.
Due to heavy discounting across the clothing market, M&S expects the full-year UK gross margin to be down by about 20 basis points. It will report its full-year results on 20 May. Bryan Roberts, of Kantar Retail EMEA, said about the latest M&S figures: "Clearly some positive news on the clothing front ... but we remain concerned that the retailer continues to cede market share to more nimble competitors. The news on lower margins for general merchandise reflects M&S' heavy discounting, which suggests there is still work to do in creating compelling ranges."
The retailer has embarked on a new overseas push, with plans to open 250 new stores around the world – following its humiliating exit from continental Europe in 2001. Cantor Fitzgerald analyst Freddie George was also cautious. "We continue to believe it will take a number of seasons before the existing team is able to manifest a marked improvement in performance in womenswear."
Group sales climbed 1.9% in the last three months, with like-for-like food sales edging up 0.1%, a solid performance in light of the later timing of Easter. Online sales rose strongly, by 12.5%. Overall UK sales slipped 0.2% on a like-for-like basis.
Due to heavy discounting across the clothing market, M&S expects the full-year UK gross margin to be down by about 20 basis points. It will report its full-year results on 20 May, which are expected to confirm that it has been overtaken by smaller rival Next in terms of annual profits for the first time this year.
M&S has embarked on a new overseas push, with plans to open 250 new stores around the world – following its humiliating exit from continental Europe in 2001.