Poll: Has Marks & Spencer lost its way as a fashion brand?

The high street stalwart saw pre-tax profits plunge 63.5 per cent to £176.4 million for the year to April 17, after it invested heavily in slashing prices and overhauling its clothing ranges to win back customers.

The revival in its clothing arm was ended by the latest results.

In the third quarter sales in the division, which includes stores in Telford Shopping Centre and Shrewsbury’s Castle Street, rose by 2.3 per cent.

But M&S said the timing of its December sale and Easter hit fourth quarter trading, meaning clothing and homewares sales fell by 5.9 per cent in the latest period, while food sales were down 2.1 per cent.

Its bottom line profits were also hit by the cost of its UK store closure programme, a move to pull out of 10 international markets and the decision to shut its defined benefit staff pension scheme to future accrual.

Mr Rowe said: “As we anticipated, the planned restructuring of M&S has come with a cost and has impacted profits.

“Looking ahead, we will continue our programme of self-help in a tough trading environment.

The group cautioned the outlook remains “uncertain”, following a clothing market slump over the past year, but pledged to continue focusing on improving its clothing arm and keeping prices low despite cost pressures from the pound.

M&S said it plans to cut store space devoted to clothing and home products by around one to two per cent and revamp about 25 per cent of its non-food shop space in the current financial year, while growing its Simply Food chain by around 90 new stores.

It wants to add around another 250 new Simply Food outlets by the end of the 2019/20 financial year. It already has food-only outlets in Bridgnorth, Oswestry, Meole Brace in Shrewsbury, and Gledrid Services near Oswestry, as well as food branches within its main Telford and Shrewsbury stores.

But the cost of its turnaround will continue to weigh on results, the group warned, particularly in the first half of the new financial year.

The group’s disappointing fourth quarter left overall UK like-for-like sales 3.6 per cent down in the year to April 17, with a fall of 3.4 per cent across clothing and home and a more resilient 0.8 per cent decline in the food business.

Overall revenues grew by 0.6 per cent to £10.62 billion for the year as a whole – a figure which includes stores which have opened or closed during the period.

M&S insisted it was “encouraged by early evidence that our strategy is working”, with full-price sales up 2.7 per cent with strong growth in the second half, and total market share stabilising at the end of its financial year.

Mr Rowe has already warned that profits would take time to recover as its clothing turnaround beds in, following moves to update its ranges and cut the number of promotions in favour of lower everyday prices.

While shares fell initially, they later recovered as investors took heart from the impact of the restructure of the business.

Speaking after the publication of the results, Mr Rowe said consumer spending on clothing was “extremely volatile at the moment and slightly depressed”.

M&S has recently poached the chief executive of Halfords – Jill McDonald – to lead the turnaround in its clothing business.

She has been recruited into the new role of managing director for clothing, home and beauty, joining the retailer in the autumn of this year.