Skip to content
Search

Latest Stories

Marks & Spencer records 17 per cent drop in first-half profit

BRITAIN'S Marks & Spencer reported on Wednesday (6) a 17 per cent drop in first-half profit, dragged down by falling clothing sales, illustrating the bumpy path of its latest attempt at a turnaround after over a decade of false dawns.

Shares in the 135-year-old M&S, one of the best known names in British retail, have fallen 36 per cent over the last year and in September the group lost its place in the prestigious FTSE 100 index.


But the stock was up 5.7 per cent at 0807 GMT after it said it was planning for some improvement in trading in its second half and said its programme was making progress.

M&S set out on its latest "transformation" plan shortly after retail veteran Archie Norman became chairman in 2017 to work alongside Chief Executive Steve Rowe, who has been with the company for 30 years and became its boss in 2016.

Norman said in May last year the firm was targeting sustainable, profitable growth in three to five years and has been instrumental in speeding up the pace of change, with the firm closing weaker stores, revamping ranges and investing online.

His boldest move yet was striking a £1.5 billion joint venture with online grocer Ocado to give M&S a home delivery service for food.

Despite the profit fall Rowe remained upbeat.

"Our transformation plan is now running at a pace and scale not seen before at Marks & Spencer," he said.

"For the first time we are beginning to see the potential from the far reaching changes we are making.

"In clothing and home we are making up for lost time. We are still in the early stages, but we are clear on the issues we need to fix."

M&S made a pretax profit before one-off items of £176.5 million in the six months to September 28. That was in line with analysts' average forecast but down from £213m made in the same period last year.

First-half clothing and home like-for-like sales fell 5.5 per cent, impacted by availability and supply chain issues. Food sales increased 0.9 per cent on the same basis, driven by volume as prices were cut.

The group said it had seen an improved sales performance in October in clothing and home, though it cautioned that market conditions remain challenging.

In July Rowe sacked Jill McDonald, the head of its clothing division, days after he publicly criticised chronic availability, and assumed direct leadership of the division himself.

The departure of supply chain director Gordon Mowat followed and in September M&S said finance chief Humphrey Singer was also leaving after little more than a year in the role.

Rowe said M&S had improved the styling and value of its clothing for the autumn/winter season and was trading the ranges with improved availability and shorter clearance periods.

"In some instances dramatic sales uplifts in categories where we have restored value, style and availability illustrate the latent potential and enduring broad appeal of our brand," he said.

(Reuters)

More For You

Rosneft in early talks to sell India refinery stake to Reliance

Reliance Industries chairman Mukesh Ambani (Photo: Getty Images)

Rosneft in early talks to sell India refinery stake to Reliance

RUSSIAN oil major PJSC Rosneft Oil Company is in early discussions with Reliance Industries to sell its 49.13 per cent stake in Nayara Energy, an Indian energy company that operates a 20-million-tonnes-per-year oil refinery and 6,750 petrol pumps, sources familiar with the matter said.

The deal, if finalised, would see Reliance overtake state-owned Indian Oil Corporation (IOC) to become India’s largest oil refiner. It would also provide Reliance with a significant expansion in fuel retailing, where it currently holds a relatively small presence.

Keep ReadingShow less
modi-trump-getty
Trump shakes hands with Modi during a joint press conference at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)
Getty Images

Key issues in India, US trade talks

TRADE talks between India and the US have hit a roadblock over disagreements on duties for auto components, steel and farm goods, Indian government sources said to Reuters, dashing hopes of reaching an interim deal ahead of president Donald Trump's July 9 deadline to impose reciprocal tariffs.

Here are the key issues at play:

Keep ReadingShow less
Anil Agarwal

Vedanta Resources, which is based in the UK and owned by Indian billionaire Anil Agarwal, has been working on reducing its debt. (Photo credit: Getty Images)

Getty Images

Anil Agarwal’s Vedanta Resources signs £438 million refinancing deal

VEDANTA LTD said on Thursday that its parent company, Vedanta Resources, has signed a loan facility agreement worth up to £438 million with international banks to refinance existing debt.

The refinancing move, where old loans are replaced by new ones, often at better terms like lower interest rates, has led ratings agencies such as S&P Global Ratings and Moody's to upgrade their outlook on the company this year.

Keep ReadingShow less
Trump-Getty

Trump said that while deals are being made with some countries, others may face tariffs.

Getty Images

Trump says major trade deal with India may be finalised soon

US PRESIDENT Donald Trump on Friday said a "very big" trade deal could be finalised with India, suggesting significant movement in the ongoing negotiations between the two countries.

“We are having some great deals. We have one coming up, maybe with India. Very big one. Where we're going to open up India," Trump said at the “Big Beautiful Bill” event at the White House.

Keep ReadingShow less
Mounjaro

Mounjaro, or tirzepatide, is part of a new class of weight-loss medications, with trials showing patients losing an average of 20 per cent of their body weight after 72 weeks.

Reuters

Lilly to sell Mounjaro pens in India as Wegovy enters market

ELI LILLY said on Thursday that it has received approval from India's drug regulator to launch pre-filled injector pens of its weight-loss drug, Mounjaro.

The move gives the company more options to compete with Novo Nordisk, which recently launched its weight-loss drug Wegovy in the country.

Keep ReadingShow less