Marks & Spencer (M&S) announced an upward revision in its profit forecast for the full year.
- M&S expects profit growth due to strong food sales, despite earlier predictions of a decline.
- Food sales at M&S grew 11% in 19 weeks, attributed to its investment in quality and value.
- Clothing and home sales increased by 6%, with in-store sales compensating for slower online growth.
- M&S is investing £13m in store refurbishments, with the first redesigned store opening later this year.
Marks & Spencer has revised its profit forecast for the fiscal year ending 1 April 2024, now anticipating profit growth contrary to its prior prediction of a slight decline. This adjustment is largely driven by impressive performance in its food sector, which saw an increase in like-for-like sales by 11% over 19 weeks leading up to 12 August. The boost in sales can be linked to the retailer’s strategic investment in enhancing the quality and value of its own-brand products.
The company’s clothing and home sectors also experienced an upturn, with sales rising by 6% during the same period. Strong growth in physical retail locations significantly offset the more muted expansion of online sales, highlighting the ongoing importance of physical retail spaces for M&S.
Despite the positive outlook, M&S has expressed caution over future economic uncertainties, acknowledging potential challenges in the consumer market as the year progresses. Nevertheless, the company remains optimistic, expecting its interim results to exceed previous financial expectations significantly.
In line with its growth strategy, M&S announced a £13 million investment plan aimed at refurbishing several stores across the Northeast. Notably, the Northumberland Street store in Newcastle city centre is set to undergo a phased redesign, ensuring continuous operation during renovation, with a new food hall scheduled to open later this year.
M&S remains confident in achieving profit growth, driven by a strategic focus on product quality, in-store sales, and infrastructural investments.
