M&S profit at top end of forecasts

Wed 04 Nov, 2009 07:13

LONDON (Reuters) - Retailer Marks & Spencer (MKS.L) posted flat first-half profit, towards the top end of expectations as tight management of costs and stocks cushioned weak sales, and said it was cautious about the trading outlook.

The 125-year-old firm, which sells clothes, food and homewares from over 650 stores in Britain and about 300 abroad, said on Wednesday profit before tax and one-off items was 298.3 million pounds in the six months to September 26.

Forecasts ranged from 275 million to 300 million, with an average of 285 million, in a company poll of 12 analysts.

Sales rose 2.8 percent to 4.3 billion pounds, including a 0.9 percent fall at British stores open at least a year.

"We have had a good start to the third quarter. However, the market remains competitive and, as we come up against volatile trading conditions last year, we remain cautious about the outlook for Christmas and the year ahead," Chairman Stuart Rose said in a statement.

(Reporting by Mark Potter, Editing by Kate Holton)