M&S released mixed results this morning, with pre-tax profit coming in ahead of analysts expectations but marred by a warning that the group’s turnaround plan may impact profit in the short term.
The group reported an underlying pretax profit of £689.6 million for the year to March 26, up nearly 5 percent on the year before, with with group revenue also up 2.4 percent.
However, new chief executive Steve Rowe warned on the short term profits of the company, as it undergoes a turnaround plan designed to spark growth in its clothing section:
“We are clear on the actions needed to recover and grow Clothing & Home, which is our top priority; to continue to grow our Food business; and to focus on driving profitability. We are investing to re-establish our price position by sharpening prices and to enhance service by putting more employees into our stores.
“These actions, combined with the difficult trading conditions, will have an adverse effect on profit in the short term.”