Cost cutting expected to bite in falling M&S profits
The retail giant is tipped by City analysts to book a fall in underlying pre-tax profit of as much as 14 per cent to £188 million for the first half of the year. Consensus forecasts point to a figure of just over £200m, against £219.1m in the same period last year.
Slipping sales will reflect the impact of a five-year restructuring programme, which is being spearheaded by M&S chairman Archie Norman and chief executive Steve Rowe.
The pair are seeking to save costs through store closures and shutting distribution centres as part of a wide-ranging efficiency drive as financial performance continues to flag.
M&S said in May it would shut some 100 clothing and home outlets by 2022 as it accelerates the programme – putting thousands of jobs at risk.