The pressure is mounting for the UK’s biggest clothing retailer.
Marks & Spencer Group Plc (MKS) has shown a drop in annual profit for the third time. This has placed enormous pressure on the CEO Marc Bolland to improve sales.
The retailer showed a decline in pre-tax profit of 3.9% to £623m ($1bn) for the year ended March 29. This is a huge drop from £665.2m in the previous year. The figure was above the analyst estimated amount of £614.5m, Bloomberg says.
Although Marc Bolland has spent about £2.3bn during the last three years on store improvement, women’s wear and its online business, it has not resulted in increased profits. The earnings and market value of the company is now below that of Next Plc, although it shows sales of more than double that of Next.
Bolland stated that they recognised the investment needed to transform the business three years ago. Solid progress was being made and the focus is now being placed on delivery.
The company forecasts improved profits in the next 12 months, such as a 1% gross margin improvement in the general merchandise unit, and 0.3% in the food division during the second half of this year.
21 MAY 2014, United Kingdom