Like-for-like sales at Marks & Spencer fell in the 13 weeks to March 28, but the decline of 4.2% was not as bad as the City had originally feared, with some analysts predicting a 7%-plus decline.
Total group sales were up 1.9% over the period, but UK stores saw a 0.3% decline, with general merchandise down 1.2% and food slightly up at 0.4%.
On a like-for-like basis, general merchandise sales in the UK were down 4.8%, with food down 3.7%.
Chairman Sir Stuart Rose said: “We have made progress against the key priorities set out at the interim results in November.
“Our customers are responding positively to the actions we have taken, resulting in an improved sales performance this quarter in both general merchandise and foods.
“International continues to grow strongly and we have managed our costs and cash flow tightly.
“Our trading stance remains ‘first price, right price’ with four main sale events a year.
“We are offering even better values across all price points in general merchandise and food – without compromising our quality or ethical standards.
“While the outlook remains uncertain, we are confident that we are doing the right things for our customers and for our business.
“Food performance improved again this quarter, with customers welcoming our increased innovation, better ranging and sharper values highlighted by our Wise Buys, Dine In and Family Favourite offers.
“We continue to improve availability. Our quality standards remain core to our values in food and we remain the UK’s most trusted food retailer.
“We maintained market share in clothing over the full year and made further progress in ‘home’.
“Sales in our international business grew 23% reflecting the ongoing integration of our Czech and Greek business partners and new store openings over the period,” said Rose.
“In line with our previous guidance for 2008/09, we expect UK retail gross margin to be around 175 basis points lower than last year, operating cost growth of 45 to 5% and capital expenditure to be no more than £700m.
“We will announce our 2008/09 full-year results and confirm our guidance for 2009/10 on 19 May 2009,” said Rose.
