20th Aug 2021 10:26
(Alliance News) - Marks & Spencer Group PLC on Friday upped its full year guidance on profit outlook after booking a blanket revenue increase.
Shares in the London-based retailer, which is listed on the FTSE 250, surged 11% to 158.15 pence in London on Friday morning trading and are up 16% in 2021 so far.
M&S is in its 2022 financial year ending March, and noted significant growth on financial 2020 results, which accounts for pre-pandemic trading.
In the 19 weeks ended August 14, total revenue was up 29% from a year ago and up 4.4% on the same period in financial 2020.
Clothing & Home revenue was up by 92% year-on-year, Food by 11% and International by 40%.
As a result, the company lifted its full year adjusted pretax profit outlook to be above the upper end of previous guidance of GBP300 to GBP350 million. Consensus was for around GBP334 million, according to Shore analyst Clive Black.
The sales growth has been led by an outperformance in Food, which is up 9.6% on two years ago, with retail park locations trading strongly.
Clothing & Home sales are up 92% on last year, but remain 2.6% below financial 2020.
In the 19 weeks, Clothing & Home online sales rose by 62% on financial 2020. The shift to digital sales and the closing of shops in lockdown meant in-store sales dropped by 20% over the same two-year period.
M&S cited focused ranges, fewer promotions and "a substantially smaller summer sale" as drivers in Clothing & Home sales, with full price sales rising by 9% in the period compared to financial 2020.
International revenue was up 40% on last year and down 5% on two years ago. Trading was impacted by Brexit-caused food supply chain challenges in Ireland and France, as well as the lockdown in India.
For the 2021 financial year, M&S recorded adjusted pretax profit of GBP50.3 million.
"At the start of the year, continued restrictions across large parts of the M&S store portfolio meant that the trading outlook was highly uncertain," the retailer said.
"Although there has likely been an element of pent-up consumer demand in trading to date, we believe this performance provides strong confirmation of the beneficial effects of the last 18 months' 'Never the Same Again' changes."
By Josie O'Brien; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Marks & Spencer