Marks & Spencer share price: Retailer corrects online sales figures

on Jun 22, 2015
Updated: Oct 21, 2019

Marks and Spencer (LON:MKS) has corrected its online sales results for the past year, showing a £151 million reduction compared to the figures originally published, the Mail on Sunday has reported, citing a clarification stated in the small print of the retailer’s latest annual report. According to the paper, the changes showed specifically that in the year to March 2014, Marks and Spencer had sold £649 million-worth of products via its website, compared to the previously stated a figure of £800 million.

Significantly, for the past four years M&S’ online sales have been overstated by a total of £500 million.
The publication revealed that the original figure had not included items bought online, which had later been returned in store. Sources have speculated that the issue arose because Marks and Spencer’s former IT system was unable to cope with the task of tracking which store returns had originally been sold online.
While the revision does not affect M&S’ total sales or profits, it paints a markedly different picture of its online performance, the Mail on Sunday noted. Accounting rules do not require retailers to make a distinction between online and in-store sales, but the issue is likely to prompt scrutiny from investors over acceptable practice when reporting online sales.
Marks and Spencer’s share price has been on the up so far today. As of 09:22 BST, the stock was trading 1.56 percent higher at 552.00p. The FTSE 100-listed retail giant has seen its shares gaining over 15 percent in the year to date.
As of 09:59 BST, Monday, 22 June, Marks and Spencer Group Plc share price is 553.00p.

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