M&S posts 17.2 percent growth in H1 profit

For the first six month period, Marks and Spencer (M&S) recorded a pre-tax profit increase of 17.2 percent to 407.8 million pounds, while statutory pre-tax profit rose to 391.9 million pounds.

The company’s clothing & home sales increased 4.7 percent, with LFL sales up 5.3 percent. Sales growth improved by 8.1 percent in the second quarter, with more seasonable weather.

Commenting on the trading update, Stuart Machin, M&S chief executive said in a statement: “Executing our strategy to ‘Reshape M&S for Growth’ has again delivered an increase in customers, sales value and volume, market share, profit and returns. Both food and clothing have now delivered market share growth for four consecutive years.”

“With clothing in growth and strong online performance, we are clear that now is the time to seize the opportunity in other categories including home and beauty. Across clothing & home online, we need to accelerate our transformation and reimagine our proposition,” Machin added.

Review of M&S H1 results

The company’s adjusted basic EPS was 14.7p, up 20.5 percent and basic EPS was 14p, up 32.1 percent.

Statutory revenue of 6,481 million pounds increased by 5.7 percent and sales for the period under review rose by 5.8 percent to 6,524.3 million pounds.

The company’s overall store sales increased 1.7 percent. M&S opened doors to two new full Line stores at Dundee and Washington Galleries with their clothing & home sales outperforming appraised levels by 13 percent. M&S flagship stores in Bristol and Bath are expected to be opened in the next financial year. Additionally, the company said, a clothing only store format trial will open in Battersea in December 2024.

The company anticipates the six full line stores opened in FY24 will generate strong annualised returns.

M&S posts positive performance across clothing & home category

The company’s women’s, men’s and lingerie categories witnessed good growth across knitwear, casual tops and men’s Autograph lines.

M&S collaborations with Sienna Miller and Bella Freud sold rapidly, while in a softer kidswear market, the company managed to slightly grow its share, with growth in boys’ daywear supported by the launch of The Parent Hood, a baby club offering member savings and community events.

Online participation increased to 33 percent and online sales were up 11.3 percent, with 16.5 percent growth in the second quarter. Partner brand sales continued to perform well, up 40 percent with growth in dresses and footwear.

Commenting on the holiday season ahead, Machin said: “The recent budget's long-term impact on M&S, our suppliers, and our customers is for now uncertain. We have the best Christmas food range I’ve seen in my time at M&S and the most stylish seasonal clothing offer yet, and we know customers are looking forward to celebrating Christmas with M&S.”

M&S announced an interim dividend of 1p per share, payable on January 10, 2025.