Annual profits of Marks & Spencer have dropped by 64 per cent. Weak clothing sales were compounded by restructuring costs.

Clothing and home ware sales tumbled by 5.9 per cent in the first three months of 2017. The retailer also reported a weaker-than-expected performance from its food halls, where underlying sales fell by 2.1 per cent. Sales in the fourth quarter were hit by calendar changes that saw key December sales days and Easter fall outside the quarter.

With inflation eating into the profits of the once reliable food offering, and a string of one-off expenses slicing into profits elsewhere, the net result has been to send pre-tax profits tanking by nearly two-thirds.

The planned restructuring of M&S has come with a cost and has impacted profits, but the business is still strongly cash-generative and the company has reduced its net debt.

But the 132 year old retailer is starting to stabilise market share and importantly has seen full price market share growth as it has removed excessive discounting.

M&S has a new chief executive. He is seeking to revive the retailer’s declining profits. His biggest job is turning around its clothing arm, which used to rely on heavy discounting to attract shoppers.