Marks & Spencer profits slide

Tuesday, 04 November 2008 12:00

Marks & Spencer said profits fell by a third over the first half as sales fell sharply.

The 124-year-old retailer said pre-tax profit was down 34 per cent to £297.8 million for the first six months, with UK like-for-like sales down 5.7 per cent.

General merchandise sales were down 6.2 per cent, while food sales fell 5.3 per cent over the period.

Food sales have been falling at the retailer since the credit crunch hit as consumers are cutting back on costs.

Although Marks & Spencer has hit back with a £10 'dine in' deal, it is the discount supermarkets that are gaining market share.

Chairman Stuart Rose said: "Trading throughout October has been volatile with recent events in the financial markets and their impact on the wider economy further weakening consumer sentiment. We remain cautious about the outlook for the remainder of the year."

In its statement, Marks & Spencer said it is facing the worst retail conditions since the early 90s and will focus on managing the business through the downturn.

The board has proposed an interim dividend of 8.3p, the same as last year.

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