Marks & Spencer saw profits slump by 34% in the six months to the end of September as the looming recession took its toll.
The retailer today unveiled adjusted profit before tax of £297.8m for the 26 weeks ended 27 September 2008, against £451.8m at the same point last year.
UK like-for-like sales were down by 5.7%, with food off by 5.3% and general merchandise down by 6.2%.
Sir Stuart Rose, chairman, said: “Market conditions and consumer confidence declined through the half, leading to reduced profits year on year, due to lower sales and investment in margin. We have managed our cost base tightly.
“Our plan is to manage the business through the economic downturn by tightly controlling costs, capital expenditure, cash flow and stock. We have a strong balance sheet underpinned by significant property assets and a secure funding position.
“We also have a strong brand and believe we are well positioned to compete by improving our operational delivery and continuing to focus on quality, value and choice. We are confident we have the right plan to bring M&S through these difficult times.”
And he warned: “Trading throughout October has been volatile with recent events in the financial markets and their impact on the wider economy further weakening consumer sentiment. We remain cautious about the outlook for the remainder of the year.”
Overall sales rose by 0.8% to £4.2bn, while in the UK they fell by 1.1%. International sales were up by 24%.
