'Please use the sharing tools found via the email icon at the top of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email [email protected] to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found at https://www.ft.com/tour. https://www.ft.com/content/18ce0927-d613-373b-b601-f9ec5bf63287 Marks and Spencer’s seemingly ever-earlier launch of Christmas TV advert has long been a source of delight to the middle classes and indignation to middle-aged commentators. In fact, first sightings of ‘Paddington and the Christmas visitor’ on November 6 – a new ad featuring the Peruvian emigre bear – caused one contemporary of Opening Quote to despair: “Just thrown away the Halloween pumpkins and the Christmas ads have started…”. Naturally, I believe my fellow curmudgeon has a point. But it may not bode well for M&S investors, either. Not just because the company feels a need to flog mince pies and stocking fillers before last weekend’s sparkler burns have healed. But because of its new focus on a blue duffle coat and red hat ensemble. Last week, rival clothes retailer Next warned that the warmer weather had hit sales of this kind of “warmer weight stock”. So, this morning, it is slightly surprising that M&S claimed clothing sales had been “encouraging” in September “supported by cooler weather”. But not that encouraging. Like-for-like sales of clothing and homeware in the half year to September 20 were down 0.7 per cent, and even like-for-like food sales were down 0.1 per cent. Still, this suggests a slight improvement in clothing and home, as same-store sales in M&S’s clothing and home unit had been down 1.2 per cent in the first quarter. Food sales were evidently unchanged, after a first quarter decline also of 0.1 per cent. Analysts at Peel Hunt had expected like-for-like sales to remain negative in both food and non-food, given “external conditions are not easy” – and said this “doesn’t faze us unduly as we do see underlying improvements”. However, food margins declined by 130 basis points to 31.3 per cent – which was worse than expected, and “not fully offset” by cost and waste savings. Chief executive Steve Rowe said: We recognise now that we face stronger headwinds in Food which will be addressed in the year ahead. Clothing margins were better, though – up 140 basis points to 58.1 per cent – as the number of clearance sales in the period was reduced from four to two and currency headwinds offset by better buying. Overall, then, group sales rose 2.6 per cent, to £5.1bn, thanks to a further roll-out of food outlets, which meant total food sales including new space were up 4.4 per cent. As a result, M&S was able to report pre-tax profit of £118m for the six months — four times its result for the same period last year. And some progress is being made on M&S’s new strategy of rationalising sales space and rebala'
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