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The global fashion business journal

19 Jun 201920:48

Marks&Spencer increases benefit 26.6% in 2018

British department store group, under restructuration, registered sales worth 10,377.3 million pounds (11,825.2 million euros), a 3% less than in the same exercise of 2017.

22 May 2019 — 18:15
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 Marks&Spencer's shop

 

Marks&Spencer improve its profitability while transforming. Department store British group registered in 2018 exercise (closed at 30 March) a benefit before taxes of 84.6 million pounds (96.4 million euros), a 26.6% more than the previous period. The net benefit positioned in 37.3 million pounds (42.5 million euros), a 28.7% more than in the previous period. Instead, the net benefit before taxes and adjusted were places in 532.2 million pounds (606.4 million euros), a 9.9% less than in 2017.

 

The company registered sales worth 10,377.3 million pounds (11,825.2 million euros), a 3% less than in the same exercise of 2017. The closure of stores provoked that the incomes of clothes and home division decreased a 3.6%, while in this division’s online channel grew a 9.8% along 2018 exercise. Sales on comparable area increased a 1.6%.

 

The group reduced its debt a 15.3%, from 1,830 million pounds (2,085 million euros) to 1,550 million pounds (1,766 million euros)

 

Marks&Spencer, which is under a restructuration process to reduce its number of stores and employees, wants to base its new strategy in smaller physical points and in the online channel. In 2018, the company closed 26 stores and is planning to open 48 shops this year.

 

 

The company announced a collaboration agreement in February through a joint venture with online’s supermarket Ocado for which they hope to empower its food division in the mid-term. Thus, the corporation will expand capital in 601.3 million pounds (683 million euros) to finance the formation of half of new joint society.

 

Marks&Spencer will issue 325 millones of new shares, equivalent to the 20% of the current capital, with an exchange ratio from 1 to 5, with a price of 185 pennies per title, which represents an approximated discount of a 31.8%.

 

 

The British company communicated at the beggining of May that was going to dismiss 47 employees on its purchase, marketing and logistics departments to simplify its fashion structure. The announcement meant the discharge of purchase responsible, Paula Bonham Carter, and the lingerie’s merchandising director Rachel Harley.

 

 

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