UK High Street Lingerie Retailer M&S Profits Drop for First Time in 2 Years

The eight percent fall in pre-tax profit was announced in the retailer's half year results. The report revealed that profits had fallen from £348.6m for the six month period in 2010 to £320.5m.

Despite a decline in non-food sales of almost one percent, a rise in food purchases of nearly four percent gave a total UK sales growth of 1.6 percent.

The decrease in the company's profits has been attributed the 'Indian Summer' in September and October, and the company's refusal to pass on all of the rising costs onto customers.

The eight percent drop in profit occurred despite new TV advertising, which was concentrated on positioning the overall M&S brand to the retailer's core female customers for the first time.

In 'The Rendezvous', M&S focussed on its more mature customers, highlighting its shapewear and occasionwear, while fashion offer for our younger customers took centre stage in 'The Date'.

This week, M&S also unveiled its new Christmas TV ad, exclusively featuring The X Factor finalists.

The retailer's intimate apparel segment has continued to perform strongly. Hosiery was up 41 percent on last year and the sales of M&S swimsuits, as featured in the 'Only at Your M&S' Tummy Tuck adverts, rose by 39 percent.

M&S international stores performed well over the period, showing a nine percent growth in sales on the previous year.

Its flagship store in Paris, at 100 Champs-Elysées, will open before Christmas and is complemented by a new French website. The store will trade from 1,400sq m and will offer a selection of M&S' womenswear and lingerie ranges, as well as some food.