Results round-up

Fourth quarter sales at Marks & Spencer were up 1.9% as the food business outperformed the market but was again held back by weak clothing sales.

Food sales were up 4.0% in total but disappointingly flat on a like-for-like (LFL) basis, short of a consensus forecast of 0.5%.

Clothing and home sales, known as general merchandise (GM), were down 1.9% in total and 2.7% on a LFL basis. The consensus for LFL sales was a 3.5% decline.

New chief executive Steve Rowe said: "Although the sales decline in Clothing and Home was lower than last quarter, our performance remains unsatisfactory and there is still more we need to do."

On the upside in GM, gross margin expectations have risen to between +240-250 basis points after a continued improvement in buying margin and some investment in price.

Rowe, who was recently promoted after a short stint heading up the clothing division following a long stint in charge of food, added that turning around the GM business "by improving our customer offer is our number one priority", but investors will have to wait until May to get details of his strategy to revitalise the brand.

Encouragement also came from M&S.com, where sales were up 8.2% alongside a strong improvement in customer satisfaction scores.

Despite the improvement in group sales, which were up on a flat third quarter and the 1.4% increase in the first half, there was no comment on profit, apart from at the international division.

While international sales were up 3.8% in constant currency terms and 4.3% on a reported basis, the company reiterated that continued currency pressure and general challenging trading conditions were still expected to "heavily impact" full year profitability of the international division.

Home furnishings retailer Dunelm reported three months of growth on Thursday, with total revenue for the third quarter increasing by 5.9%. Total like-for-like growth, combining like-for-like stores and home delivery, increased by 1.1%.

The company pointed out that, due to the 53rd week included in its last financial year, the period included six days fewer Winter Sale days year-on-year, reducing like-for-like growth by 4.9% or £1m in the third quarter, though that was partially offset by the earlier Easter contributing 1% towards performance.

Adjusting for the calendar impacts, underlying like-for-like performance was 5% for the 13 weeks to 2 April.

Dunelm reported strong footfall in like-for-like stores driven by Winter Sale performance, with improved conversion and higher transaction values year-on-year also contributing to growth.

Its store portfolio also expanded, with one new superstore opened and a number of medium-sized refits completed.

The firm also reported good growth in the online business, including a 27.6% increase in home delivery sales.

Gross margin for the quarter was 90 basis points higher than the previous comparative period, with the board putting this down to improved stock management and the reduced cost of end of season product clearance.

"We have enjoyed a good Easter, are looking forward to a successful final quarter and are confident of achieving our expectations for the full year,” said Dunelm chief executive John Browett.