Marks & Spencer has reported a strong first half which clocked up revenue of £6.13bn – up from £5.53bn for the same period last year. Profit before tax and adjusted items also rose to £360.2m from £205.5m. During the period ended 30th September, food sales rose by 14.7 per cent, with clothing & home up by 5.7 per cent.
CEO Stuart Machin commented: “I am clear that if we serve our customers well, we serve our shareholders well, and our unrelenting focus on trusted value is matched by disciplined capital allocation. We have further strengthened or balance sheet and net debt position, with an interim dividend payment being made to shareholders for the first time in four years.”
Robyn Duffy senior analyst at RSM UK commented: ‘Today’s robust half-year trading results show that Brits have fallen back in love with M&S. With like-for-like sales for food up 14.7 per cent and driving sales overall, investment into reviving the business has paid off. Last year’s acquisition of Gist – a deal geared to improve the food supply chain network – has enabled M&S to be more competitive on price without compromising on quality – appealing to today’s price-sensitive consumer.
‘Clothing and home also performed strongly despite headwinds in the market and unseasonal weather in September which caused weak sales across the industry. M&S benefit from having a greater footprint in their clothing business, in terms of school uniforms and under-garments, giving them an edge at this time of year. Its laser focus on full-price sales during the period, coupled with refinements to ranges has also boosted margins. A crucial win for any retailer coming out the other side of a cost crisis where margins have been squeezed.
‘Overall, M&S continues to be the darling of the high street and this looks set to continue into 2024 with anticipated robust year-end results, despite choppy economic waters ahead. Key investments have allowed M&S to meet their customers needs and a clearer ‘less is more’ strategy is paying off.’
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