M&S says clothing and home goods sales are steadying

In a trading statement, the retailer said sales fell by 5.5% overall in the second quarter compared to the same period last year.

But it stressed that total clothing and home sales were "steady" for the last two weeks of the quarter.

M&S expects half-year profits of up to �295m ($510m), within market forecasts.

One-off costs

This is a slightly lower than the �325m recorded in the same period last year.

It looks as if its performance has improved slightly but sales are still down and (new chief executive) Stuart Rose has still got a big job on his hands Retail shares trader M&S share price

M&S's second quarter figures cover the 12 weeks to 2 October.

Within the overall 5.5% drop in sales, clothing was down 3.6%, home goods fell by 21.4%, and food dropped by 2.8%.

M&S said that it expects to have to pay exceptional charges of about �80m in the first half of its financial year to cover the closure of its Gateshead store and head office restructuring.

This figure also including an undisclosed amount for fending off a �9bn hostile takeover bid back in the summer from retail entrepreneur Philip Green.

Share buy-back

While M&S said total clothing and home goods sales were steady in the last two weeks of the second quarter, food sales were slightly lower.

"It looks as if its performance has improved slightly but sales are still down and (new chief executive) Stuart Rose has still got a big job on his hands," said one London trader.

M&S chief executive Stuart Rose, who was appointed to see off Mr Green's approach, will now unveil interim results on 9 November.

The retailer is also continuing with a tender offer that will see it buy back �2.3bn worth of shares, priced in a range of 332p to 380p.

M&S will hold an extraordinary general meeting on 22 October to approve the offer which will close on the same day.

The results of the offer will be announced no later than 26 October.