In a compelling financial report covering the 26 weeks up to September’s close, Marks & Spencer (M&S) celebrates the success of its ‘Reshaping MS’ strategy. The renowned retailer showcases a formidable half-year performance, underscored by impressive figures.
Profit before tax and adjusting items surged to £360.2 million, a substantial increase from £205.5 million. Statutory profit before tax witnessed a remarkable jump, reaching £325.6 million compared to £208.5 million. Notably, Clothing & Home sales experienced an impressive 5.7% rise, with adjusted operating profit in this sector climbing to £223.4 million from £171.4 million a year ago.
International constant currency sales displayed a 3.9% increase, coupled with an adjusted operating profit rise to £43.4 million, up from £39 million. Reflecting confidence, the company reintroduced its twice-yearly dividend to shareholders.
Delving into Clothing & Home results, the company attributed success to enhanced style and value perceptions, resulting in increased full-price sales. Total C&H sales rose by 5.7%, while like-for-like sales experienced a commendable 5.5% increase, driven by more confident buying. Standout performers included women’s denim and casual bottoms with a 17% increase and an 18% rise in holiday wear.
M&S Clothing maintained leading net promoter scores for quality and value, securing the top market share position for summer in womenswear. Noteworthy is the increase in customer numbers, with physical stores outperforming online channels.
The adjusted operating margin for the C&H division rose to 12.1% from 9.8% last year, supported by a modest increase in the full-price sales mix, cost reductions in the logistics network, and favorable currency and freight rates.
Online sales experienced a growth of 4.6%, with the online adjusted operating profit margin increasing to 9% from 6.9%. CEO Stuart Machin attributed the success to a relentless focus on trusted value, quality products, and strategic investments.
Machin expressed confidence in the coming months, anticipating a positive response to Christmas ranges. However, he acknowledged the uncertainty in the market due to factors such as interest rates, deflation, geopolitical events, and erratic weather. Despite this, M&S remains committed to reshaping for future growth.
The company’s commitment to innovation, customer satisfaction, and strategic investments positions Marks & Spencer for continued success in a dynamic retail landscape. Explore the excellence of M&S as it navigates the ever-evolving world of retail.
