Blog: Missing the Marks
Leonie Barrie | 20 May 2008
Even though Marks & Spencer’s CEO Sir Stuart Rose has steered the retailer back to the GBP1bn annual profit benchmark last achieved more than ten years ago when Sir Richard Greenbury was still at the helm, the seemingly buoyant full-year results are overshadowed by worries about a difficult future.
Instead of focusing on the retailer’s record profits, industry observers are more concerned instead with lower like-for-like sales in the fourth quarter, missed internal bonus targets and difficult trading at the start of its current financial year.
There are some who believe profit was inflated by the bonus cuts, which is going to make it hard to put in a repeat performance this year. And others fear the retailer’s focus on short-term measures like cutting prices – particularly in its clothing lines – to maintain market share will do nothing to shore up the desirability of the retailer’s range in the long term. Revenue from general merchandise, including garments, fell 3.1% at stores open at least a year in the fourth quarter.
The City fell out of love with M&S after it delivered a disappointing Christmas trading update, and it seems it will take more than record profits to put it back in favour again. The next year or so will be testing, to say the least.
Some of just-style’s more eagle-eyed readers might have noticed a small change to the menu bar on the homepage: the addition of the word re:source. Yes it might be a small change – but it marks the co...
Over the past week just-style has continued to try to unravel the potential ramifications of Donald Trump’s election as the next president of the United States....
One event dominated the international airwaves last week, and on just-style too we took a closer look at the surprise election of Donald Trump as the 45th president of the United States....
As the Brexit roller-coaster continues to twist and turn, and the US presidential election campaign nears its unpredictable and possibly protectionist end, there's no doubt these events – and the perc...
- Steps to piloting living wage in garment factories
- How to ensure sustainability is more than a slogan
- US apparel retailers' November 2016 sales roundup
- Why do modern robotics elude sportswear makers?
- Planning is key to an effective inventory strategy
- Esquel efficiency drive continues to boost brands
- Taiwan textile maker investing in first US plant
- US Q3 in brief – Sears, Vince Holding, Genesco
- Myanmar garment industry "lacking labour rights"
- Outdoor apparel sector set for double-digit growth