- UK sales up 4.8%: General Merchandise +2.1%; Food +7.9%;
- UK like for like sales up 2.9%;
- Full price sales of General Merchandise up 5.3%;
- Clearance stocks down 35% on last year
UK sales for the 13 weeks to 31 December 2005 were +4.8% in total with General Merchandise +2.1% and Food +7.9%. Within this Clothing was +1.9% and Home +3.8%. Full price sales of General Merchandise were up 5.3% compared with 0.4% last quarter.
|
Like-for-Like Sales % |
Q2 2005/06 |
Q3 2005/06 |
|
General Merchandise |
-0.2 |
+0.8 |
|
Food |
+2.7 |
+5.1 |
|
Total |
+1.3 |
+2.9 |
This was an encouraging performance against comparatives which included two "mega-days" last year. The trend improved as the quarter progressed with sales in the Christmas period being particularly strong.
We have made progress across all areas of the business through better buying, better values and tight control of inventory, with around 35% less stock going into our post-Christmas clearance than last year. Our Food business had a strong Christmas reflecting the quality and innovation of our ranges.
Stuart Rose, Chief Executive said:
"This has been an encouraging quarter. Looking ahead, we expect the market to remain challenging. Moreover, we are facing increasing cost pressures. Costs of fuel, utilities, rent and rates have risen sharply and will have an impact next year.
"We remain focussed on product, service and environment. We are undertaking a substantial programme of store development and expect to have over 30% of our store portfolio in the new format by the end of 2006. We are on track against our plan although there remains much to do."
The Board is pleased to announce the appointment of David Michels as a non-executive director with effect from 1 March 2006. David has held a number of senior positions in the leisure industry most recently as Group Chief Executive of Hilton Group plc. He is a non-executive Director of British Land plc.
Marks and Spencer Group plc's Q4 trading statement for the 13 weeks to 1 April 2006 will be announced on 11 April 2006.
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
