Investors were apparently hoping for more robust results and guidance from a company whose stock is up 11% since March. Shares of M&S fell 4.74% before close in London.
The company reported an adjusted profit before tax of 965.2 million pounds ($1.9 billion) for the year ended March, up 28.5% from the fiscal year ago. That was about in line with analysts' expectations of 966 million pounds, according to Reuters. The company reported a record profit of 1 billion pounds in 1998.
Total sales climbed 10.1% from the previous period to 8.6 billion pounds. The company said market share increased in both food and clothing.
Full-year comparable sales rose 6.1%, while fourth-quarter comparable sales declined to 3.8% from 7.1% in the third quarter.
"We feel that we actually had a very good fourth quarter," Dyson said. "Trading conditions were difficult and we were up against tougher comparatives."
"We also had a lot of our portfolio being modernized at the moment, so about 25% to 30% of our space is being disrupted," he added.
In a research note, Citigroup said it still expects fiscal 2008 profit to come in at 1.08 billion pounds, with the company more likely to beat than miss expectations.