Quarter 2 - Trading Statement

Marks & Spencer Group PLC 11 October 2005 Issued: Tuesday, 11 October 2005 QUARTER 2 TRADING STATEMENT 2005/6 - 12 weeks to 1 October 2005 • UK Retail sales up 3.3%: General Merchandise +0.4%; Food +6.3%; • UK Retail like for like sales up 1.3%; • Full price sales* of General Merchandise up 0.4%; • Unaudited Group profit before tax and exceptionals for the 26 weeks to 1 October 2005 is expected to be at or around the upper end of market expectations. UK Retail Sales for the 12 weeks to 1 October 2005 were +3.3% in total with General Merchandise +0.4% and Food +6.3%. Within this Clothing was +0.2% and Home +2.1%. Like for like sales were up 1.3% in total compared with a decrease of 5.4% last quarter. General Merchandise like for like sales were down 0.2% against a decrease of 11.2% last quarter. Food like for like sales were up 2.7% compared with an increase of 0.7% last quarter. Full price sales of General Merchandise were up 0.4% against a decrease of 2.4% last quarter. Our focus is on profitable full price sales, better buying and tight control of stocks and costs. We are committed to offering outstanding value, styling and service in a pleasant environment. We have concentrated on improving values as well as introducing better product and more newness. Customer reaction to our Autumn ranges has been positive. Our focus on rebuilding our Home business is showing through. Food continues to make progress and has delivered another quarter of like for like growth, driven by product innovation and availability. Customer perceptions of product and service have improved. This has been reinforced through our focussed advertising campaign for Food and Womenswear. We expect unaudited Group profit before tax and exceptionals for the 26 weeks to 1 October 2005 to be at or around the upper end of market expectations. The outlook for the full year profit performance will depend on trading in the important third quarter. On Charles Wilson's departure on October 28th all responsibility for IT, Logistics and Property will pass to Ian Dyson, Finance Director. Stuart Rose, Chief Executive said: 'This is an encouraging performance, but there remains much to be done. The environment remains very difficult and we have the important Christmas trading period ahead. We are making progress. We are listening to our customers and feedback has been positive. The product is getting better, our stores are looking better. We are offering our customers better value. This will remain our focus.' * non-clearance sales Marks and Spencer Group plc's Interim Results for the 26 weeks to 1 October 2005 will be published on 8 November 2005. Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences and prospects are 'forward-looking statements' within the meaning of the United States federal securities laws. These forward-looking statements reflect Marks & Spencer's current expectations concerning future events and actual results may differ materially from current expectations or historical results. Any such forward-looking statements are subject to various risks and uncertainties, including failure by Marks & Spencer to predict accurately customer preferences; decline in the demand for products offered by Marks & Spencer; competitive influences; changes in levels of store traffic or consumer spending habits; effectiveness of Marks & Spencer's brand awareness and marketing programmes; general economic conditions or a downturn in the retail or financial services industries; acts of war or terrorism worldwide; work stoppages, slowdowns or strikes; and changes in financial and equity markets. Contacts: Investor Relations: Amanda Mellor +44 (0)20 8718 3604 Sarah McGlyne +44 (0)20 8718 1563 Corporate Press Office: 020 8718 1919 Investors & Analysts Conference Call: This will be hosted by Stuart Rose at 08.20 (BST) on Tuesday 11 October 2005: Dial in number: +44 (0) 20 7162 0083 A recording of this call will be available until Tuesday 18 October 2005: Dial in number: +44 (0) 20 7031 4064 Access Code: 678099 This information is provided by RNS The company news service from the London Stock Exchange
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