The British chain Marks and Spencer announced on Wednesday that it had returned to profit during its staggered 2021/2022 annual financial year and completely left Russia, after ceasing its shipments there in the wake of the invasion of Ukraine.
The British group specifies that it “recognized a charge of 31 million pounds (37.3 million francs)” in its results published on Wednesday.
The Ukrainian activities ‘have also been partially closed due to the impacts of the war, but we are working with our (local) partner to reopen as soon as possible,’ adds Marks and Spencers in a press release.
The company’s activities in Russia were operated by the Turkish franchisee Fiba Group, which also manages the Ukrainian branch.
Marks and Spencers is ending the franchise partnership in Russia, which means “the brand will no longer be used” in that country, a spokeswoman told AFP.
The British brand returned to full-year net profit for its staggered financial year ended in early April, at 306.6 million pounds against a loss of 198 million a year earlier, thanks to sales almost 7% higher than their pre-level. -pandemic, solids in food and clothing.
But the company warns, like its competitors, that soaring inflation will weigh on its sales, while “the decline in purchasing power (of consumers) will increase”.
The company says it suffered the impact of Brexit last year, which caused additional costs and supply problems which notably led the brand to close more than half of its stores in France.
High-end positioning
‘Marks and Spencers has done a great job leading a massive transformation in the midst of a pandemic. The results show that the group’s efforts to cut costs and focus on digital are paying off,” said Laura Hoy of Hargreaves Lansdown.
And despite the rise in inflation, ‘the positioning of (the company) as a premium brand could help it’ in the face of the cost of living crisis, according to the analyst.
Marks and Spencers’ joint venture with online food retailer Ocado, which had an ‘outstanding performance’ during the lockdowns, has since suffered a drop in its average shopping basket as customers return to offices and their shopping habits. ‘purchase.
Ocado said in a separate press release that it expected slower-than-expected sales growth this year for this entity (Ocado Retail).
/ATS
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