Marks & Spencer (LON:MKS) reported slower than expected sales in their clothing and home division on Tuesday, sending shares down by 2 percent.
Like-for-like sales in the troubled divisions fell by 1.2 percent in the three months to beginning of July. However, this was an improvement on the 5.9 percent dip seen in the final quarter of its financial year.
Despite the slower-than-expected start to the year, M&S Chief Executive Steve Rowe said the company remained on track to recovery.
“Trading in the first quarter was in line with our expectations and we are on track with delivery of the plan we announced last year,” said Rowe.
“I am pleased that we continue to grow full price sales in clothing & home, with reduced discounting and no clearance sale in the quarter.”
Marks & Spencer is in the midst of a turnaround plan to maximise profitability by strengthening its successful food business with new locations, and remedying continually weak sales across its clothing division.
Back in May, the British retailer announced the arrival of former Halfords (LON:HFD) chief executive Jill McDonald to oversee its struggling clothing, homeware and beauty business.
In addition, Last December the company also confirmed the departure of Chairman Robert Swannell, after more than six years in charge. Swannell is set to be replaced by former Asda boss, Archie Norman.
Despite a vast turnaround plan and corporate shake-up, the company continues to struggle with falling profits amid a tough retail climate.
Back in May, Marks & Spencer revealed a fall in annual profits of 64 percent.
According to the update, profits at the British retailer fell to £176.4 million for 2016 down 63.9 percent from £488.8 million, with profits slimmed by new store openings and lack of demand for its clothing ranges.
Shares in Marks & Spencer are currently down 2.51 percent at 9.30AM (GMT).