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
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