Marks & Spencer has reported strong first half results, building on performance of last year. For this period, profit was up 17.2% at £407.8m. This comes after the decision of the popular retailer to phase out bulkier furniture products like beds, sofas, and wardrobes. However M&S M&S continues to offer smaller furniture items, such as accent chairs, side tables, and coffee tables, as part of its core in-store range.
Photo: Dreamstime.
International constant currency sales was down 10.3%; and the adjusted operating profit was £15.2m (2023/24: £32.4m).
As M&S continues to invest in the early stages of 'Reshaping for Growth', the business has delivered improved sales and volume, profit and market share in both Food and Clothing & Home.
Stuart Machin, Chief Executive says, '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.
The business remains in robust financial health. We have improved our return on capital employed to 15% and further strengthened our balance sheet, giving us the capacity and flexibility to invest for growth and deliver structural cost reduction, demonstrating our ability to deliver value for shareholders.
The recent Budget's long-term impact on M&S, our suppliers, and our customers is for now uncertain. Meanwhile, we are confident and we remain on track and focused on what is in our control. 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.'
Clothing & Home deliver consistent growth
Clothing & Home sales increased 4.7%, with LFL sales up 5.3%. Sales growth improved in Q2 (8.1%) compared with Q1 (1.3%), with more seasonable weather. Market share was up 90bps to 10.3% for the 12 weeks to 15 September 2024, with M&S outperforming the market for c.4 years. Despite a more promotional market, full price sales mix was broadly level at 80.5%. Adjusted operating profit margin was above target at 12.0% (£242.2m) compared with 12.4% (£240.9m) last year. The slight reduction in margin reflected investments in technology and digital development, partly offset by cost savings.
More information:
Marks & Spencer
www.marksandspencer.com