"A return to like-for-like growth in the core clothing category would ordinarily have the champagne corks popping at M&S. But the fact that this has been achieved against such weak comparables (the corresponding period last year coincided with the botched relaunch of the website) means the fizz quickly goes flat.
An improving trend, yes, but still underperformance in a UK clothing market that showed as much as 4-5% growth over the period. On the right track maybe, but still losing market share.
Clothing on the way up, but GM like-for-like sales still negative in Q4 - for the 15th consecutive quarter. By extension, the homewares business must be performing especially badly, despite strong consumer demand in a market buoyed by ongoing strength in the UK housing sector. This is a growth market, but M&S seems unable to grab any of it.
Margin improvement in GM, driven by higher volumes of full-price merchandise and more targeted promotional activity. But carrying more stock going into the Sale period than planned. Holding its price position and not discounting willy-nilly, but not selling as many items as it surely would have hoped.
Food continuing to achieve like-for-like growth in a hugely challenging market. And with gross margin improvement to boot. No buts here. As ever, a very mixed picture. And one certainty: the business needs to start reducing those ‘buts’. Or management butts might still be on the line.”
Source: Planet Retail
