Marks & Spencer blames latest slump in sales on autumn heat

Sales slump: Marks & Spencer

Jonathan Prynn, Business Editor @JonPrynn|Consumer Business Editor

5 November 2014

Marks & Spencer today became the latest high street giant to fall victim to the record-breaking Indian summer as it revealed its clothing sales slumped in September.

The retailer notched up its 13th consecutive quarter of falling demand for its fashion ranges, but said most of the damage was done in the early autumn when balmy temperatures stopped shoppers buying coats and jumpers.

It said that “recent market conditions remain challenging, with unseasonal weather resulting in high levels of promotional activity across the market”. In recent weeks high street rival Next and fashion brand Superdry’s owner SuperGroup have issued profit warnings to the City following the long spell of warm weather.

Chief executive Marc Bolland “There are some things you cannot completely plan for [but] the signs are positive if you take out the September month. October has been nearly equally unseasonable, although slightly better.”

However, City analysts said they saw early signs of a long-promised turnaround in M&S’s better than expected first-half figures.

The shares soared 31.5p, or 7.78 per cent, to 436.2p. In the first five months of the financial year until the September slowdown the key womenswear ranges had recorded a 1.3 per cent increase in sales.

Neil Saunders, managing director of retail researchers Conlumino, said: “Given that womenswear is one of M&S’s most problematic categories this swing into positive territory is a sign that the years of decline may well have bottomed out and that its strategy of becoming more fashion-focused is starting to pay dividends.”

Underlying pre-tax profits rose 2.3 per cent to £268 million in the first half of the year. Total sales fell 0.7 per cent on a directly comparable basis, helped by a 1 per cent increase in sales in its food arm.

Marks & Spencer blames latest slump in sales on autumn heat

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