Marks & Spencer has notched up a better-than-expected bounce in half-year income due to buoyant meals and clothes buying and selling, however cautioned over an “unsure” client backdrop and rising prices.
The retail big reported underlying pre-tax income up 17.2% to £407.8 million for the six months to twenty-eight September as a turnaround plan continues to repay.
Like-for-like gross sales rose 7.5% throughout its meals enterprise and elevated 5.3% in its clothes and residential division, after a bounce again in demand for trend ranges within the second quarter due to extra seasonal climate.
Chief Government Stuart Machin mentioned the long-term influence of latest measures introduced within the Funds was “for now unsure”.
M&S added that an “unsure” client backdrop and price pressures would proceed into its second half.
It mentioned: “Throughout the first half of the 12 months, value inflation has continued to be elevated, operating effectively forward of value inflation and the buyer setting has been unsure.
“Regardless of this, the enterprise has traded effectively, rising quantity and worth market share.
“As we enter the second half, we anticipate this backdrop to persist.”
Nevertheless it mentioned buying and selling was on observe within the first 5 weeks of its second half and that it was “assured of constructing additional progress within the the rest of the 12 months”.
It has been a very good H1 at M&S, with progress in:
✅Clients
✅Gross sales
✅Market share
✅Revenue
✅Funding returnsNevertheless, there’s nonetheless a lot extra to do and a lot alternative for future progress – and this energises us!
A giant thanks to our prospects for buying with us🙏 pic.twitter.com/k2VkORgeOO
— Stuart Machin (@MachinStuart1) November 6, 2024
The agency’s figures confirmed that on a statutory foundation, pre-tax income rose by 20.4% to £391.9 million over the primary half. Shares lifted 3% after the figures.
Nevertheless, the outcomes confirmed the influence of hovering value pressures, with the agency’s wages invoice up 10% after retailers have been hit exhausting by the rise within the minimal wage earlier this 12 months.
M&S mentioned value actions have pushed financial savings of round £60 million within the half-year, which it mentioned “largely” offset inflation.
Machin cheered a robust end result, however mentioned there was “a lot to do”.
He mentioned: “The simple factor to do at the moment would merely be to say that these are good outcomes, however that wouldn’t be the appropriate factor to do.
“Within the spirit of being positively dissatisfied, now we have a lot to do over this 12 months and past.
“Regardless of our sturdy buying and selling momentum, there’s far more alternative for future progress and that energises us.”
The corporate has been urgent forward with a revamp plan lately, led by Machin, together with heavy cost-cutting and retailer closures, after earlier makes an attempt to regain its former glory fell wanting the mark.
In Could, it declared that the group was in its strongest monetary well being for practically 30 years and was seeing the “the beginnings of a brand new Marks & Spencer” because it posted a 58% surge in annual income.
