Trading Statement

RNS Number : 9259Z

Marks & Spencer Group PLC

30 September 2009

 



Issued: 30 September 2009

MARKS AND SPENCER GROUP PLC

QUARTER 2 2009/10 - TRADING STATEMENT

13 weeks to 26 September 2009

• Group sales +2.7%

• UK sales +1.9%: General Merchandise +2.2% (Clothing +2.7%; Home -1.8%); Food +1.7%

• UK like for like sales -0.5%: General Merchandise -0.8%; Food level

• Online sales +30%

• International sales +9.6%

Total UK sales were up 1.9% over the period continuing the improving trend seen over the last three quarters. 

Clothing sales were up 2.7%, with market share level on the year1. This quarter we successfully launched Indigo, our new Womenswear casual range, as well as a new designer collaboration with Jsen Wintle in Autograph for men. In Food, sharper values, better availability and product innovation have delivered better like for like performance for the fourth consecutive quarter. We extended our successful Cook 1234 concept to Indian food and re-launched the M&S Cook range and Confectionery shop.

International sales were up 9.6% and M&S Direct had another strong quarter with online sales up 30%.

As a result of better stock control, sourcing and supply chain management, we now expect the full year gross margin to be 50 to 100bps lower than last year. We are continuing to manage costs tightly, although better than planned volumes are expected to lead to an increase in full year operating costs of 0% to 1%, excluding bonus. Capital expenditure for this year is still expected to be around £400m.

Sir Stuart Rose, Chairman said:

'We are pleased to report continuing improvement in our performance. This demonstrates that the actions we are taking are working. 

'Whilst there is more visibility in the marketplace and consumers appear more confident, we continue to be cautious about the outlook. We expect 2010 to be a tough year and we will continue to run the business accordingly.

'As we approach our key Christmas trading period, we are recruiting an additional 20,000 seasonal employees to help us deliver a great Christmas to our customers.'

Marks and Spencer Group plc will report its half year results for the 26 weeks to 26 September 2009 on 4 November 2009. 

1 TNS Total Clothing and Footwear 12 weeks ending 16 August 2009 9.7% v 9.6% 12 weeks ending 17 August 2008

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:    

Majda Rainer                      [phone]

Corporate Press Office:       [phone]

Investors & Analysts Conference Call:

This will be hosted by Stuart Rose at 08.45 on Wednesday 30 September 2009:

Dial in number:                    [phone]

A recording of this call will be available until Friday 9 October 2009:

Dial in number:                    [phone]

Access Code:                      142254#

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