LONDON (Reuters) -British retailer Marks & Spencer (OTC:) joined rivals in warning on the outlook for the present 12 months amid a worsening cost-of-living crunch, taking the shine off a leap in revenue.
The 138-year-old clothes and meals group, one of many largest names in British enterprise, mentioned on Wednesday it made adjusted pretax revenue of 522.9 million kilos ($655 million) within the 12 months to April 2 – according to analysts forecasts and up from simply 41.6 million kilos within the pandemic hit 2020-21 12 months. However for the present 2022-23 12 months, M&S mentioned it was ranging from a decrease revenue base as a result of it could not see a repeat of presidency enterprise charges aid, its worldwide enterprise wouldn’t see a contribution from Russia and it was investing in capability development at three way partnership Ocado (LON:) Retail.
“The enterprise is now a lot better positioned and had an encouraging begin to the 12 months. Nevertheless, given the growing value pressures and shopper uncertainty, we don’t presently anticipate to progress from this decrease revenue base in 2022-23,” it mentioned.
Previous to the replace analysts have been on common forecasting revenue of 449.4 million kilos in 2022-23, in keeping with Refinitiv information.
M&S mentioned buying and selling within the first six weeks of the brand new monetary 12 months had been forward of the comparable durations in 2021-22.
After presenting the outcomes, Steve Rowe will step down as CEO after six years within the high job, ending a 39-year profession at M&S. He will likely be succeeded by meals boss and joint chief working officer Stuart Machin.
($1 = 0.7983 kilos)
