'Make-or-break' fears for Marks and Spencer chief after profits plunge by 14 per cent

 
P23 M&S model

The pressure on the embattled boss of Marks and Spencer intensified today after the high-street giant unveiled its worst financial results for four years.

Sales of the much-criticised clothing and homeware ranges fell by four per cent as customers gave its lacklustre fashion lines a wide berth.

Pre-tax profits for the year to end of March were down 14 per cent at £564 million — the second consecutive year of decline. In another blow, it was announced that the group’s highly regarded marketing chief Steve Sharp — the inspiration behind the “Your M&S” advertising campaigns — is to step down.

Analysts said the reception for the chain’s autumn and winter ranges — unveiled last week — could prove “make or break” for chief executive Marc Bolland when they land in stores in July.

Mr Bolland, who took the helm in May 2010, said the company was “working hard” to get trading back on track in womenswear.

He said the autumn and winter ranges were a “step in the right direction” adding: “We have seen very strong support from the fashion press.”

Profits at M&S, which has more than 700 UK stores and more than 400 overseas, would have been far worse without a stellar performance from its premium food business.

Boosted by new upmarket lines and the success of its meal deals, food sales rose 1.7 per cent.

Mr Sharp will retire next February after 10 years at the company. He will leave the board in July but will continue to work as creative director until his departure. He will be replaced by Patrick Bousquet-Chavanne as executive director of marketing.

Chairman Robert Swannell said: “Steve has been responsible for many of the company’s iconic campaigns.”

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