REPORT For 13 weeks to June 27, 2015, general merchandise gross margin showed an improvement at Marks and Spencer (M&S). The company said that it is on track to deliver full year gross margin guidance of 150 to 200 bps driven by ongoing sourcing initiatives. Sales during the period were marginally up by 0.2 percent, while like-for-like sales declined by 0.4 percent. M&S.com reported a growth of 38.7 percent.
Commenting on the performance, Marc Bolland, Chief Executive, said, “We continue to make progress against our key priorities. General merchandise sales were broadly level on last year and we are on track to deliver the planned increase in gross margin. M&S.com performance was very strong, with customers appreciating all the improvements to our website.”
International business showed modest growth on constant currency basis. Notwithstanding the ongoing challenging macro-economic environment, key priority markets such as India and Hong Kong performed well. The company’s full year guidance remains unchanged. M&S will report its half year results on November 4, 2015.