Marks & Spencer has reported a drop in half-year profits despite strong growth in the food arm of the business.
Underlying profit before tax fell 9% to £261.6m for the six months to the end of September.
Like-for-like food sales rose by 2.5% during the period, while sales of general merchandise – comprising clothing and home products – fell by 1.5%.
M&S said investments in the business – including a major store revamp programme – had affected profitability.
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“We are pleased with the progress made, given the high level of activity and a number of key projects launching this year. This has led to a higher level of additional costs, which while planned for, have impacted short-term results,” said M&S CEO Marc Bolland.
In the food division, M&S said gross margins increased by 50 basis points thanks to improved buying and better management of promotions. It said it expected further improvements in the second half of the financial year.
The retailer said the food business had benefitted from a 5% improvement in availability over the past three years.
Last night, M&S published its full Christmas ad on social media ahead of its first TV airing on Wednesday evening during Coronation Street:
Date: Nov 5, 2013