Marks and Spencer downs next year sales targets owing to the financial crisis in Europe

Marks and Spencer lowered its projected profits for new fiscal year in the light of some disappointing results in the year ended March 31, 2012. The decision is made in the light of last year’s performance and economic crisis in the European region.

The largest clothing brand in the UK made a pretax profit of $1.12 Billion last year, a 1.2 percent decrease compared to the previous financial term. Though the profits surpassed the figure of $1.09 Billion estimated by financial experts last year, it was still a decrease. The company however, has kept the dividend on its stock intact at 17 pence.

Despite the decrease in profitability of the company last year, M&S still foresee an increase between 1.1 billion pounds and 1.7 billion pounds in sales in the next two years. M&S had previously estimated the sales at 2.5 Billion pounds last year but it was unable to achieve that target despite the expansion of its stores internationally.

“Marks & Spencer performed well in a challenging economic environment, growing group sales by 2 percent and holding market share,” Chief Executive Officer Marc Bolland said in the statement. “Whilst the economic environment has deteriorated since we first set out our strategic plans, we have made significant progress.”

Despite all the losses that the annual report showed, listed in London Stock Exchange the company showed a 0.4 percent increase in share price to 338.2 pence, which accumulates to a total of 8.8 percent increase this year.

Founded in 1884, Marks and Spencer operate more than a thousand stores worldwide and caters to more than 20 product categories in clothing.

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Posted by Usman Khalid on May 22 2012. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.