Jim Armitage: Marks & Spencer chief Marc Bolland's focus on profitability is working
Forget Marc Bolland’s mis-steps over the Alexa Chung suede skirt, M&S's most recent numbers are decent.
Bolland was traduced on the Beeb this morning for getting too carried away with the exclusive £200-a-pop caramel number.
It seems demand was so high that he ran off too many, meaning they ended up in the sale.
The hiccup would be fair game if it had been more widely typical of how he’s been running the place: nothing narks shoppers more than seeing the schmutter they bought at full price turning up in the sale two weeks later.
But today’s numbers show that, in general, quite the opposite is happening. Despite the weird weather, M&S largely resisted discounting.
That hurt takings: doubtless an additional three-week clearance sale could have easily added a percentage point to the tills. But it has made for a healthier, more profitable business.
Even after more than a quarter of a billion pounds of share buybacks and dividends, net debt has plunged by nearly £400 million.
It may not grab the headlines like Alexa Chung’s skirt, but for investors, this stuff matters.
They should expect another big return of cash at the full year.
