(Bloomberg) -- Marks & Spencer Group Plc said the cost-of-living crisis and a full exit from Russia will prevent its profit from rising this year.

The company said Wednesday it’s taking a 31 million pound ($38.9 million) charge as it ends its franchise in Russia, which added 5.2 million pounds to earnings last year. This year Marks & Spencer won’t get U.K. business tax relief and results will exclude Russia, the retailer said, adding that this lowers the company’s “profit base.” 

“Given the increasing cost pressures and consumer uncertainty, we do not currently expect to progress from this lower profit base,” the company said Wednesday.

Chief Executive Officer Steve Rowe is handing over to new CEO Stuart Machin and co-CEO Katie Bickerstaffe, who will have to navigate the cost-of-living crisis and steer the food and clothing retailer’s turnaround efforts after more than a decade of attempts to jumpstart the business. Their biggest tasks will be to tackle M&S’s large and expensive store portfolio, boost online sales and stay competitive in clothing after being dismissed as old-fashioned, ill-fitting and pricey. 

A household brand with hundreds of stores across the nation, M&S’s successive management teams have repeatedly failed to return the chain to prior annual profits that exceeded 1 billion pounds. M&S shares fhave lost two-thirds of their value since Rowe took over in 2016.  


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