M&S has reported a significant increase in profits, marking its strongest value perception in a decade.
- For the half-year ending 28 September, M&S saw a 17% rise in profit before tax and adjusting items.
- The retailer’s sales grew by 5.8%, with food revenue seeing a substantial jump of 8.1%.
- New and renewed stores outperformed expectations, enhancing the overall trading momentum.
- CEO Stuart Machin highlights further opportunities for growth across various categories despite current successes.
M&S has experienced a notable surge in profits, achieving the highest value perception seen in the last ten years. The retailer’s profit before tax and adjusting items increased by more than 17% for the half-year ending on 28 September, reaching a total of £407.8 million. Sales during this period rose by 5.8% to £6.52 billion, underscoring the company’s robust performance.Food sales were particularly strong, with revenue climbing 8.1% and adjusted operating profit rising by 34.5% to £213.1 million. This growth reflects M&S’s impressive standing in the market, marking its fourth consecutive year of market share expansion.
In addition to food sales, clothing and home segments also showed positive results. Sales in these areas advanced by 4.7% while profit saw a modest rise of 0.5%, reaching £242.2 million. The strategic opening of new and refurbished UK stores has surpassed expectations, contributing positively to the company’s growth trajectory.
Despite these encouraging results, CEO Stuart Machin expressed that there remains considerable scope for improvement. He stressed the need for continued growth, particularly in categories like home and beauty, and pointed out the necessity to accelerate M&S’s transformation strategy. Progress in M&S’s online clothing and home offerings has been slower than anticipated, highlighting an opportunity for further development.
The company is also focusing on resetting its international priorities to drive future growth and improve short-term performance. Machin acknowledged the uncertainty brought about by recent budget changes, which could impact M&S and its stakeholders. Nevertheless, he remains optimistic about the company’s Christmas offerings, which feature an extensive range of food and stylish seasonal clothing, aimed to attract consumers during the festive season.
M&S’s strong performance and strategic initiatives position it well for future growth, despite external challenges.
