British retailer Marks & Spencer said underlying sales rose 2 per cent in the first quarter in what was the weakest growth for seven quarters as interest rate rises and bad weather put off customers.
The high-street retailer said today that like-for-like UK sales increased by 2.9 per cent in general merchandise and by 0.7 per cent in food in the 13 weeks to June 30th.
A Reuters poll of analysts had forecast average like-for-like general merchandise sales growth of 1.3 per cent and food sales growth of 1.9 per cent. That compared with M&S's view of forecasts for growth of 1 per cent in both categories.
Consumer confidence has been dented by five interest rate increases in less than a year, while sales of summer clothing has been hit by the dire weather in May and June, with the latter month the wettest on record.
Britain's biggest clothing retailer also said international sales grew by 14.8 per cent in the period.
The company has over 450 stores across Britain, as well 150 worldwide, including over 130 franchise businesses, operating in 30 countries.
Shares in M&S closed at 632-1/2 pence yesterday valuing the company at around £10.8 billion. The stock had hit an all-time high of 759p in late April.