British retailer Marks & Spencer posted sliding sales in the run up to Christmas, as clothing was hit by unseasonably warm autumn weather in the third quarter.

Total sales sank 1.6 per cent in the 13 weeks to December 27, compared with the same period of the group’s previous financial year, M&S said in a trading update that sent its share price diving.

“Trading in October and November was affected by unseasonal conditions which impacted sales across the clothing sector,” the company said.

“We deliberately held back the level of discounting especially in December. While this had an adverse impact on sales we delivered a good performance on gross margin.”

On a like for like basis, which strips out the impact of new floor space, British sales fell 2.7 per cent in the reporting period, but food rose 0.1 per cent.

However general merchandise, which includes clothing, sank 5.8 per cent – registering the 14th successive quarterly decline.

M&S added that an “unsatisfactory performance” at its e-commerce distribution centre had “strongly impacted” the performance of the division.

International sales meanwhile slid 5.8 per cent, hit by worsening currency and economic turmoil in the Middle East and Russia.

The group’s share price sank in response to the disappointing earnings news.

M&S shares tumbled 2.33 per cent to 452.40 pence on London’s FTSE 100 index of top companies, which was up 1.28 per cent at 6502.17 points.

AFP