Originally on Thursday the group said despite an 8.3 per cent crash in clothing and home sales, group sales grew 1.3 per cent, or 0.2 per cent on a constant currency basis. By midday though, that had changed. The group sent a second news release to the market, which unveiled a 0.4 per cent decline in total sales, or a 0.9 per cent dip at constant currencies.
In some ways, it’s still the same old story at M&S. The middle-class, affluent food customer remains fiercely loyal, although price deflation – an industry-wide affliction – sent first quarter like-for-like sales at that division down 0.9 per cent. Thanks to new store openings, total food sales still reported 4 per cent growth.
Clothing sales remain pretty dismal, however, and Mr Rowe’s decision to reduce promotional activity and move the timing of the annual summer sale has had a negative impact on short-term trading. Management also blamed the recent referendum for the slump, citing a slowdown in consumer spending in the month preceding the vote.
There are still glimmers of hope on the horizon though. Mr Rowe’s long-term strategy for the company includes permanent pricing cuts across a selection of product lines, which has been in process since January. Bosses say sales of items which received a price cut in the last financial quarter have been much stronger since.