UK food and clothing group Marks & Spencer swung to a heavy full-year loss as it felt the full impact of the coronavirus lockdowns on clothing sales.
The company on Wednesday reported pre-tax losses of £209.4m for the 53 weeks to April 3 compared with a profit £67.2m a year earlier. Group revenue fell to £9.1bn from £8.9bn.
M&S said overall trading for the first six weeks of the financial year and since reopening had been ahead of the comparable period two years ago in 2019/20.
Clothing and homewares slumped to a £129m loss from a profit of £223.9m profit a year ago as sales fell b y a third. Food profits were down 9% to £213.6m.
Looking forward, the company said its central case was a profit before tax and adjusting items of £300m-350m as it aimed for a further reduction in net debt.
“Core food is in strong growth although hospitality and franchise remain adversely affected, with clothing & home sales growing since reopening and online remaining robust. International sales continue to be impacted by on-going restrictions, particularly in India,” M&S added.
“While encouraging, it is unclear how the recovery will develop and if consumer activity will sustain. International markets continue to face headwinds with ongoing disruption and the material costs of Brexit which we are working to mitigate.”
