LONDON: British retailer Marks & Spencer posted an eighth consecutive quarterly fall in underlying sales of clothing, piling pressure on management to deliver a swift turnaround when new ranges start hitting the shops this month.
Chief Executive Marc Bolland, who later yesterday will face shareholders angered by two years of falling profit at the firm’s annual meeting at London’s Wembley Stadium, is pinning his hopes on a new clothing strategy based on more stylish and higher-quality garments.
Autumn/winter ranges were unveiled in May by his new general merchandise team, led by former M&S food boss John Dixon, and received mostly positive reviews from analysts and the fashion press. That sent M&S shares, which have also been buoyed by bouts of bid speculation, to a five-year high.
The new collections will start to arrive in stores and online from July 25 with a full launch and main advertising push in September.
Investors have said there could be pressure for Bolland to go if the new autumn ranges do not set the tills ringing. They will want to see signs of a pick-up when M&S updates on second-quarter sales on November 5, while a much improved Christmas trading performance is imperative for the Dutchman’s survival.
“Investors will be looking for an upturn in general merchandise sales by the end of the year. The new clothes collection was applauded by the fashion magazines, but the key thing is if the collection sells,” one of M&S’ top 10 investors told Reuters on condition of anonymity.
However, Bolland again cautioned the market not to expect too much, too soon. “We’ve always said that this will be a step-by-step approach,” he told reporters.
Reuters
