Like-for-likes up 6.8 per cent
Marks and Spencer has reported strong sales growth well ahead of market expectations in a fourth quarter trading update issued today.

Like-for-like sales over the whole business were up by 6.8 per cent. Food sales rose by 5.6 per cent and general merchandise, including clothing and home, was up by 8.2 per cent, both on a like-for-like basis.

Pre-tax profit for the year is expected to be between£745 million and£755 million.

Numis analyst Steve Davies said: 'We were expecting M&S's trading update to be strong but today's announcement is well ahead of expectations. Food sales continued to outperform most of the industry. But the real outperformance has come in general merchandise, covering clothing and home. At a time when both markets have been weak, M&S has accelerated like-for-like growth of 0.8 per cent in the third quarter to 8.2 per cent for the fourth [quarter].'

For the 52 weeks until April 1, sales were up 3.2 per cent, with clothing and home remaining flat and food up 7 per cent.

Marks & Spencer chief executive Stuart Rose said: 'We are pleased with the progress we are making, but there remains much to do. The trading environment remains difficult and we do not expect this to improve in the next financial year. Progress will be more demanding as we start to come up against growth year on year.'

Preliminary results for the year ending April 1 will be announced on May 23.