M&S says Russia exit, cost pressures to keep profits from rising

The Marks & Spencer Group said the cost-of-living crisis and a full exit from Russia will prevent earnings from rising this year.

The company announced Wednesday that it was paying a fee of $31 million.

This year, Marks & Spencer will not receive UK business tax breaks and the results will exclude Russia, the retailer said, adding that it lowered the company’s “profit base”.

“Given mounting cost pressures and consumer uncertainty, we do not currently expect to make any progress on this lower earnings basis,” the company said on Wednesday.

Chief Executive Officer Steve Rowe is handing over to new CEO Stuart Machin and co-CEO Katie Bickerstaffe, who must navigate the cost of living crisis and guide the food and clothing retailer’s turnaround efforts after more than a decade of trying to start the business.

Your biggest tasks will be to tackle M&S’s large and expensive store portfolio, boost online sales and stay competitive in clothing after it has been dismissed as dated, ill-fitting and expensive.

As a household brand with hundreds of stores across the country, successive management teams at M&S ​​have repeatedly failed to bring the chain back to previous annual profits of over £1billion.

Since Rowe acquired it in 2016, M&S shares have lost two-thirds of their value.