The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Marks & Spencer Cancels Dividend for Fiscal 2021

The move is set to save the British retailer £210 million.

Marks & Spencer store interior | Source: Marks & Spencer Image Library

Bloomberg

28 April 2020

LONDON, United Kingdom — Marks & Spencer Group Plc canceled its dividend and took measures to ensure it has enough credit available for the next 18 months as retailers prepare for the possibility that stores will never be the same again after Covid-19.

Withholding any dividend for fiscal 2021 will save £210 million ($261 million), Marks & Spencer said Tuesday. Lenders also agreed to relax so-called covenant agreements on its debt through September 2021, giving the company easier access to loans.

Lockdowns have been another blow for Marks & Spencer’s ailing clothing business, which will force the retailer to depend even more on food.

Marks & Spencer said it will give investors an update on its transformation program and plans to change how it works permanently when reporting results on May 20. In September, the retailer will have a multichannel food operation set up through its alliance with online grocer Ocado Plc.

By Thomas Mulier

In This Article

Topics

Retail

Organisations

Location

London, United Kingdom

Brands Owed Millions After Matchesfashion Collapse

Designer brands including Gucci and Anya Hindmarch have been left millions of pounds out of pocket and some customers will not get refunds after the online fashion site collapsed owing more than £210m last month.

US Sues to Block $8.5 Billion Union of Coach, Michael Kors

Antitrust enforcers said Tapestry’s acquisition of Capri would raise prices on handbags and accessories in the affordable luxury sector, harming consumers.

Op-Ed | How Long Can Adidas Surf the ‘Terrace’ Trend?

As a push to maximise sales of its popular Samba model starts to weigh on its desirability, the German sportswear giant is betting on other retro sneaker styles to tap surging demand for the 1980s ‘Terrace’ look. But fashion cycles come and go, cautions Andrea Felsted.

How Rent the Runway Came Back From the Brink

The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.