Marks & Spencer (M&S) saw a 8.2% decline in sales in the three months ended December 26th.
Typically, during the stronger season, clothing sales fell 25.1% to £787 million. In November alone, the group’s clothing sales plummeted 40%.
M&S Food Court rose 2.2% to boost sales at £1.7 billion. International sales suffered, falling 10.4% overall.
Chief Executive Steve Lowe said: More importantly, under Covid Clouds we have seen very strong performances from the food business, including further acceleration of Ocado Retail and Home Online. I would like to thank all of my colleagues for doing top-notch Christmas for our customers on near impossible conditions.
“While short-term trading remains extremely difficult, we will accelerate change under our never-before-matched programme to ensure that businesses emerge in very different ways from the pandemic. I’m continuing,” he added.
M&S said it is affected by Brexit and is currently facing potential tariffs from goods from the EU.
“We’ve seen a lot of experience in the world,” commented Ross Hindle, retail analyst at Third Bridge. However, growth is not sufficient. Their fashion sector declined with the group’s total sales down 8.4% in the quarter. ”
“The potential acquisition of Jaeger in M&S suggests the possibility of a more aggressive shift into the multi-brand space. M&S has the potential to be filled with non-M&S products to drive the top line. There are a number of big stores. The risk here is whether such brands could nibble on M&S brand products.
“Despite the pressures facing the clothing sector, the M&S food sector is expected to deliver solid results driven by both stockpiling and its OCADO partnership. Ocado is expected to have market share throughout the pandemic We have expanded our 20 basis points to earn, but capacity issues continue to limit the group’s growth potential.”
M&S stocks are currently trading at -2.20% at 138.24 (0943GMT). Since the start of the year, stocks have fallen from a high of 209.53.
