M&S reports 62% drop in annual profits

Following announcement of store closures

Marks and Spencer has revealed a steep fall in annual sales and profits, hours after announcing that it will be closing over 100 stories by 2022.

Annual pre-tax profits fell by two-thirds to £66.8m as a result of store closures which has cost the business £321m.

Sales across food, clothing and homeware also declined. The 134-year old retailer has been critcised in the past for failing to revive its clothing and M&S has admitted that it is failing to attract younger customers.

Unseasonable weather was also an attributing factor.

Chief executive, Steve Rowe said:

“At our half-year results in November I outlined the need for accelerated change at M&S.

“The first phase of our transformation plan, restoring the basics, is now well under way and the actions taken have increased the velocity of change running through our business.

“These changes come with short-term costs which are reflected in today’s results.”