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 around the general merchandise division at the high street giant.