Marks and Spencer sales improved 1.9%Christian Fernsby ▼ | May 20, 2020
Marks and Spencer has reported a 21.2% slump in profits after a lift in sales in its food arm failed to outweigh a plunge in revenues in its troubled clothing division.
Marks and Spencer Profits hit £403 million
Profits hit £403 million, below an average City estimate of £415 million. Analysts had expected the retailer’s adjusted annual pre-tax profits to fall between £384 million and £452 million.
Profits took a £52 million hit in March due to coronavirus, and the retailer estimated that costs and stock write downs related to the outbreak had cost it £212.8 million. The retailer took a charge of £157 million as it was holding seasonal goods which are now unsellable or is racking up costs holding on to the stock for next year in warehouses. Clothing sales dropped to just 16% of last year’s level at the worst point in the crisis, the company said. ■