LONDON, May 26 — British retailer Marks & Spencer (M&S) today reported an 88 per cent slump in full-year profit, reflecting a collapse in clothing sales due to the Covid-19 pandemic and said it was unlikely to pay a dividend for the current year.
M&S, which also sells upmarket food, made a pretax profit before one-off items of £50.3 million (RM294.6 million) in the year to April 3 versus analysts’ average forecast of £43 million and down from the £403.1 million made in 2019-20.
The 137-year old group, one of the best known names in British retail, said like-for-like clothing and homeware sales plunged 31.5 per cent, damaged by multiple coronavirus lockdowns which shuttered stores, while food sales on the same basis were up 1.3 per cent. Food stores remained open during the crisis.
As a result it made a statutory loss of £209.4 million versus a profit of £67.2 million in 2019-20.
M&S said overall trading for the first six weeks of the 2021-22 financial year and since all stores reopened from lockdown has been ahead of the comparable period two years ago in 2019-20, and its central expectations.
It forecast underlying pretax profit to recover to £300-350 million in 2021-22.
“As we recover balance sheet metrics consistent with investment grade, we will assess the reintroduction of dividend payments, although as we focus on restoring profitability this is unlikely in the current year,” it said. — Reuters
