Challenging year for Marks & Spencer

May 27, 2021
Challenging year for Marks & Spencer

One of the largest British retailers posted annual figures that reflected pandemic's effects on the business

Marks & Spencer, that has 254 full-line stores where it sells clothes, homeware and food, posted a pre-tax profit before one-off items of 50.3 million pounds, down from 403.1 million pounds reported for 2019-2020. In the food sector, where space was open even during the pandemic, like-for-like sales went up 1.3%. On the other hand, clothing and homeware sales plunged 31.5%, due to the multiple COVID-19-related lockdowns. Also, the company’s profit for 2020-2021 slumped 88%, reflecting the collapse in clothing sales.

Chief Executive Steve Rowe stated: "by going further and faster in our transformation during this period of disruption...we have now moved beyond fixing the basics to forge a reshaped M&S that is ready for the next phase."

For the future, Marks & Spencer forecast an underlying pre-tax profit to recover to 300-350 million pounds in 2021-2022. Moreover, the company is looking to fully remodel approx. 180 stores.

After the news hit the wires, the company's stock price went up 7.3%.

Source: reuters.com

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