M&S holds market share despite weak growth

Marks & Spencer has revealed weak second-quarter sales growth of 0.6 per cent but says it is keeping up with rivals.

Marks & Spencer has revealed weak second-quarter sales growth of 0.6 per cent but says it is keeping up with rivals.

The figures were slower than the company's first quarter numbers and most analysts' expectations.

The 100-year-old firm said today that non-food like-for-like sales were flat compared with forecasts of -1 per cent to +2.5 per cent growth.

The retailer said key clothing sales, which contribute about half of group turnover, were up 0.9 per cent in total. However, M&S said full price sales increased 3 per cent and crucially it had performed in line with rivals during what was a difficult summer for clothing retailers because of unusually hot weather.

READ MORE

Food sales were up 1.6 per cent on a like-for-like basis -again slower growth than the first quarter. Home sales were down 1.7 per cent in total for the 11-week period ended September 27th.

Analysts have become worried that the recovery has fizzled out at M&S as recent sales have become more lacklustre.

The shares have been treading water between 300-320p this year.