After taking account of adjusted items of 514.1 million pounds, including the charge relating to store closures, pretax profit was 66.8 million pounds, a 62 percent fall.
Marks & Spencer (M&S), one of the best known names in United Kingdom retail, first said it would reduce the amount of store space devoted to clothing and homewares in 2016, shortly after company lifer Steve Rowe became chief executive. The retailer was hit by a one-off charge of £321 million from an expanded store closure programme, announced yesterday.
Shares in M&S have fallen 26 percent over the past year and the firm is in danger of being booted out of the prestigious FTSE 100 index.
"The first phase of our transformation plan, restoring the basics, is now well under way and the actions taken have increased the velocity of change running through our business", said M&S CEO Steve Row today. "These changes come with short term costs which are reflected in todays results".
That compared with profit after taxation of 117.1 million pounds a year earlier. This is said to be a result of M&S's successful exit of loss-making owned markets and favourable currency effects.
Food revenue grew 3.9% in the year - though like-for-like sales slipped 0.3% - while Clothing & Home revenue fell 1.4% and was down 1.9% on a like-for-like basis.
In notes attached to its results, the company said the "continued migration" of clothing and home products online; the development of global competition; the growth of home delivery in food; and "the march of the discounters" all amounted to threats to its business.
A number of household names, including BHS, Maplin, Toys R Us and House Fraser have either gone into administration or been forced to close stores in a bid to boost profits and battle the rise of online shopping.
The moves are part of a transformation plan created to modernise the business as it looks to improve its systems and recover lost market share among younger shoppers. M&S has managed to reduce costs by at least 350 million pounds and created a platform for growth.
The British retailer has extended its closure plans as it is focusing on a minimum of a third of its sales online, as per the statement made by the high-street chain.