Marks & Spencer's latest financial summary, covering the quarter ending 28th March 2015, notes that general merchandise sales increased by +1.3% (+0.7% on a like-for-like basis), much of which the retailer attributes to customers recognising continued improvement in product quality and styling.
The retailer's general merchandise gross margin improvement remains on track, while M&S.com sales have returned to positive growth as planned, with sales up 13.8%.
Marc Bolland, chief executive, comments: “We have made strong progress over the quarter. In Food we delivered another excellent performance, with sales growth ahead of the market. We continued to deliver on General Merchandise gross margin, and are pleased that we have achieved this whilst also improving General Merchandise sales. M&S.com has returned to growth, as planned, with further improvement in customer metrics.
"General Merchandise performance improved this quarter, driven by continued focus on product quality and styling. In line with our plan for the year, we promoted less and focused more on full price sales. However, this was partly offset by more stock going into the Christmas sale as a result of the unseasonal conditions through the autumn/winter season.
"Macro-economic issues, particularly in our Russia, Ukraine and Turkey franchise partnership, coupled with further weakening in the Euro, have significantly impacted International second-half profit. Our key priority markets such as India continue to perform well.
"M&S.com sales returned to growth as planned, with the website metrics including traffic, conversion and customer satisfaction continuing to improve. Our new distribution centre at Castle Donington performed well during the quarter.
"Against the backdrop of recovering consumer confidence but continuing low inflation, our strategy remains to become an international multi-channel retailer with focus on: General Merchandise gross margin and sales; cash flow and continuing growth in Food sales."
Marks and Spencer Group plc will report its full-year results on 20th May 2015.
