M&S is out of fashion

The strategy is to improve margins and profitability in the important general merchandise (GM) division, where underlying sales fell by 1.4 per cent in the year. Mr Bolland is targeting a 100 basis-point increase in the gross margin, to be delivered through improved sourcing. But that might not be enough to appease long-suffering investors. They were promised a 30 to 50 basis-point margin improvement this year, but were instead served up a 110 basis-point fall, as the high-street retailer came under pressure from promotional activity.

However, Mr Bolland insisted the strategy was on track. "We talked about building up capability over the past few years, and now we want to start delivering," he said. He added that costs would grow by 4 per cent this year, but that M&S would not be adding any more store space for GM. As a result, capital spending will drop to roughly £525m this year, from £710m. The progressive dividend policy will be maintained, and there is the potential for excess cash to be returned to shareholders "on a regular basis" - though the Dutchman refused to elaborate on this point.

Meanwhile, underlying food sales rose 1.7 per cent. Combined with GM sales, that left total UK sales flat and the operating profit 6 per cent lower at £619m. More promisingly, clothing did return to growth in the fourth quarter - the first time in three years. Overseas sales also grew 6.2 per cent, with profit 2 per cent higher at £123m.

A new web platform went live in February, but will take four to six months to "settle in", impacting first-quarter trading. Broker Cantor Fitzgerald has downgraded its pre-tax profit forecasts for fiscal 2015 by 1.4 per cent to £680m - giving EPS of 32.8p.