Supermarket chain Marks & Spencer (LON:MKS) has reported that pre-tax profits for the year ended 31st March fell by 62.1% to £66.8 million, largely due to costs related to the group’s transformation plan and store closures. When those costs are excluded, profits before tax were down by 5.4% because of weaker margins within the food division.
Full-price margins in Clothing and Home rose by 50 basis points, but revenues dropped by 1.4% as the company cancelled clearance sales and unseasonable weather impacted on second half trading. International operations reported nearly double the profits of the prior year as the company exited loss-making territories and benefited from currency movements.
Shares in the company were 307p at 12:30 BST, a 5.24% improvement from this morning’s open.