At the same point last year the retailer recorded adjusted pre tax profits of£451.8 million. It blamed deterioration in the market conditions and consumer spending.
UK like-for-like sales dropped 5.7 per cent in the period, with food dropping 5.3 per cent and general merchandise falling 6.2 per cent.
UK revenues were down 1.1 per cent, while international sales climbed 23.9 per cent.
Chairman Sir Stuart Rose said: "Market conditions and consumer confidence declined through the half, leading to reduced profits year on year, due to lower sales and investment in margin.
"Trading throughout October has been volatile with recent events in the financial markets and their impact on the wider economy further weakening consumer sentiment. We remain cautious about the outlook for the remainder of the year.”
The retailer said that the economic environment has changed “dramatically” and it is now facing “the most difficult retail conditions since the early 90's”.
It said food sales were affected by market conditions and increased competition through aggressive pricing. Market share declined from 4.3 per cent to 4 per cent.
In the period the retailer opened stores in the Middle East, Russia, Turkey, Cyprus, South Korea, Indonesia and the Philippines
It cut back capital expenditure to£700 million this year and to£400 million next year.
Marks & Spencer updates on its third quarter sales on January 7 2009.
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