Marks & Spencer reports on "mixed" Q3 trading with clothing down -2.8%

Marks & Spencer sales dipped -0.1% in the 13 weeks to 30 December with Food down -0.4% on a like-for-like basis and Clothing & Home down -2.8% like-for-like.

The Clothing & Home performance, while down, was slightly better than a number of analysts had forecast with predictions typically ranging from -3% to -3.4%.

Chief executive Steve Rowe said the results had been hit by unseasonable weather in October but trading had picked up before Christmas. The business did not take part in Black Friday and instead focused on improving the overall value of its clothing offer.

"In Clothing & Home, we continued with our strategy of restoring price integrity and improving everyday value. Our revenue grew both in-store and online over the weeks leading up to Christmas, and we held our full price stance in a very promotional market and did not participate in Black Friday.  However, the impact of an unseasonal October resulted in an overall revenue decline. As a result, we carried more stock into the December sale," he said.

On a total change basis total UK sales for the quarter were up 1.1%, Food was up 3.6% and Clothing & Home was down -2.3%. International was down -9.8%, reflecting its strategy to move from wholly owned to franchise stores internationally, and online was up 3%.

“We continue with the accelerated transformation programme we outlined in November and have recently taken several important steps to reshape the business for the future. These include a new technology partnership and organisation, and the sale of our Hong Kong based business in line with the streamlined franchise-led model we are adopting for International,” Rowe added.