M&S says merchandise sales dip but margin story intact

London

BRITISH retailer Marks & Spencer (M&S) reported a dip in first-quarter underlying sales in its clothing, footwear and homewares business on Tuesday, a minor setback for the group after a return to growth in the previous three months.

The 131-year-old firm did, however, maintain its guidance for the 2015-16 year, including a rise in the general merchandise gross margin of 1.5 to 2 percentage points. Chief executive Marc Bolland has stressed that his strategy is to primarily focus on profit margins rather than driving sales growth as he seeks to turn arou…