The head of British clothing retailer Marks & Spencer (M&S) conceded today that the firm's hard-won recovery had faltered as its annual profit nudged just 0.5 per cent higher.
The 100-year-old high street chain, which reported a worrying slide in sales last month, said its pre-tax profit excluding exceptionals was £763.2 million sterling ($1.35 billion) for the 52 weeks to the end of March, against restated profits of £759.5 million a year ago.
The result topped market forecasts of £753 million to £760 million but profits have been shored up with cost cuts amid disappointing sales, despite some progress in home furnishings and financial services.
"Whilst we established new areas of growth in money and home this year, the initial surge in the recovery of our clothing and food business faltered," chief executive Mr Roger Holmes said.
M&S has failed to build on its 11-per cent clothing market share for 15 months, having recaptured 1 per cent of the 3 per cent share it lost since its peak in 1998 when profits were £1.2 billion.
It is losing out in formal women's wear to main rival Next and in children's wear to supermarkets like Asda.
Food sales, where M&S has a 4 per cent market share, are also on the slide "Clearly we are not satisfied with our sales progress," said outgoing chairman Mr Luc Vandevelde.