Ireland's economic woes held back international sales growth at Marks & Spencer, according to chief executive Marc Bolland.
International sales were up 6.2%, as a result of improved performance across most of their markets "although the trading conditions remain difficult in Ireland and Greece", he told analysts last week.
Conditions in Greece became so bad they closed two stores but the retailer said it will work closely with its retail partner there "so it will make it in a positive way out of the situation".
Bolland said that Vat increases and public spending cuts were putting trading conditions under pressure.
The company has increased its marketing spend in an effort to offset the drop in sales from reduced consumer confidence. It also said it will review its price in the coming months.