M&S (LON: MKS) FY16 Results: Profits Fall; Renewed Efforts to Turn Around Clothing

Executive Summary

• Marks & Spencer (M&S) reported that group revenues grew by 0.8% on a 52-week basis in FY16, beating the consensus estimate.
• Net profit fell by 16% and diluted EPS fell by 15.9% as exceptional operating costs impacted the bottom line. Both metrics missed consensus.
• Comparable sales growth was weak at best across M&S’s segments, and new CEO Steve Rowe outlined his initial plans to turnaround the UK Clothing division’s performance.