Adjusted pretax profit still fell 5.4% to GBP580.9 million, hit by a decrease in its Food gross margin, which fell "more than expected" by 140 basis points during the year.
In a section entitled "Facing Facts", M&S CEO Steve Rowe said: "At our half year results we set out a hard-headed diagnosis of the headwinds faced by M&S and the change which is needed".
"We have been clear about our plans to accelerate our store closure program and the action we must take to build a business with sustainable, profitable growth", an M&S spokesperson said.
"These changes come with short-term costs which are reflected in today's results".
At the end of 2017/18 M&S had 1,035 stores in the United Kingdom, with 300 Clothing, Home and Food, 696 Food-only and 39 Outlet stores.
Credit Suisse has predicted a 4.5% decline in pre-tax profit to £539mln in fiscal year 2018/19, driven by weak like-for-like sales but with less pressure from foreign exchange headwinds. This is said to be a result of M&S's successful exit of loss-making owned markets and favourable currency effects.
M&S lost more ground in its fourth quarter, with like-for-like clothing and home sales down 3.4 percent, worse than the previous quarter's 2.8 percent drop, and same store food sales down 0.6 percent, against a third quarter fall of 0.4 percent.
"Developments in the retail industry since then have reinforced our conviction about the need for the transformation of M&S", said the group in a statement.
"Changes in the high street and migration online mean that we have to be decisive with our store estate, renewing and closing stores more quickly. Our supply chains in both Clothing & Home and in Food require significant upgrades, so that we can be faster to market, reduce high stock levels in Clothing, and improve availability and waste in Food".
Some closures are occurring to coincide with the opening of nearby M&S food stores, the retailer noted.