8th Nov 2023 08:35
(Alliance News) - Marks & Spencer Group PLC on Wednesday reported improved interim results and early signs suggest the clothing, home and food retailer will enjoy a robust Christmas.
Marks & Spencer shares rose 10% to 247.61 pence each on Wednesday morning in London.
Revenue in the half-year to September 30 increased 11% to GBP6.13 billion from GBP5.54 billion a year earlier.
Pretax profit jumped 56% to GBP325.6 million from GBP208.5 million.
The company's interim dividend amounted to 1.0 pence per share. It did not pay an interim dividend in the year prior.
M&S said: "M&S's first half results showed a good year on year improvement in almost all businesses. Favourable market conditions, surprisingly resilient consumer demand and the effect of competitor exits from the market provided a solid backdrop. In this environment, the strategy to reshape for growth has enabled M&S to increase customer numbers and market share in both businesses, with healthy volume growth and reduced promotions in Food, higher than expected full price sales in Clothing & Home and structural cost reduction supporting robust margins."
Food sales rose 15%, while in Clothing & Home, they increased 5.7%.
Looking ahead, the company said that adjusted pretax profit in the current financial year 2024 will be weighted towards the first half, as it increases its investments in its "reshaping" in the second half. "We remain laser-focused on our long-term ambition to reshape M&S for future growth," it said. In financial 2023, which ended on April 1, adjusted pretax profit was GBP482.0 million, a 7.8% fall from GBP522.9 million in financial 2022.
M&S said that as it enters calendar year 2024, it will not rely on the current favourable recent market conditions to persist, noting uncertainty amid the highest interest rates in 20 years, geopolitical events and "erratic" weather.
Chief Executive Stuart Machin said: "Trading momentum has been maintained through October, with customers responding positively to our Christmas ranges. There will be challenges and headwinds in the year ahead and progress won't be linear, but we are ambitious for future growth and are driving what is in our control."
By Tom Budszus, Alliance News reporter
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