M&S shares fall 8% as CEO warns on future profits

Turnaround plan in place for retailer

Shares in Marks & Spencer are trading 8% lower this morning after its chief executive warned his turnaround plans would weigh on future profits.

Shares in the retailer were trading at 408p this morning, down 8%, and are 9.5% lower since the start of the year. Today's fall followed a statement from chief executive Steve Rowe, who succeeded Marc Bolland in April, that his recovery plans would weigh on short-term profits. He said the firm needs to cut the price of its clothing, improve its fit and quality, and put more staff on the shop floors. In its most recent annual results to 2 April, the firm reported a 4.3% increase in underlying profits to £689m, while sales rose 2.4% to £10.6bn. Pre-tax profits fell 18% to £488m after...