Marks and Spencer FY'13 sales up 1.3 percent

For financial year 2013, Marks and Spencer group sales were up 1.3 percent. Underlying operating profit was down 3.5 percent. In the UK, underlying operating profit was down 2.2 percent. Underlying earnings per share decreased by 6.3 percent. The

full year effective tax rate on underlying profit before tax was 22.7 percent. International revenues were up 0.9 percent.

Marc Bolland, Chief Executive, said: “Three of the four parts of the business made strong progress. We are working hard to get the General Merchandise performance back on track. Our international operations performed well in key markets and our multi-channel business delivered strong growth.”

Full year 2012 M&S group sales up 1.3 percent

In Asia, Marks and Spencer focused on driving growth in its priority territories of India and China. With its partners, Reliance Retail, it opened six new stores in India. It continued to grow its presence in Shanghai, with the opening of seven new stores. Hong Kong operations also performed strongly and one new store was opened.

Franchise operations across key territories in the Middle East performed well, with sales up 9 percent. The company opened 19 new stores across 11 territories, including new markets such as Georgia, Kazakhstan and Armenia.

Sales in international business were up 4.5 percent. The company now trades from 418 stores in 51 territories. The company opened a net 35 new stores during the year, Marks and Spencer now trades online locally in 10 countries. Robert Swannell, Chairman, said: “2012/13 was another year of progress for M&S where a mixed trading performance was balanced by good progress in building longer term foundations in line with our key strategic goals.”

After nine years at M&S, Steven Sharp, Executive Director, Marketing, will be retiring from the business at the end of February 2014. He joined M&S in 2004. Patrick Bousquet-Chavanne will take over responsibility for marketing. Patrick has played a key role in the development of the new marketing strategy in women’s wear. He was previously a Group President at Estée Lauder.

Robert Swannell, Chairman, said; “Steve has been responsible for many of the company’s iconic campaigns. He leaves the company with our best wishes. I look forward to welcoming Patrick Bousquet-Chavanne to the Board; he brings a wealth of international experience.”

The company is two years into a three-year plan of transforming M&S into a truly international, multi-channel retailer. Last year the company began the roll-out of its new store format, designed to make stores easier to shop by improving navigation and making better use of space. At the end of the year work on 337 stores was completed, representing over 65 percent of the space. Work will be completed on schedule by mid 2013/14.