Marks & Spencer Group Plc raised its outlook, predicting profit growth this fiscal year as the UK retailer gains market share in groceries, clothing and homeware.
In a turnaround for a retailer that has long promised to reinvigorate the business and failed to deliver, M&S now expects to report a significant improvement in its interim results and profit growth for the full year.
The pick up in performance is across the board with like-for-like food sales growing 11% in the first 19 weeks of the financial year. Comparable sales in its clothing arm, sometimes derided for being unfashionable, grew more than 6% following strong sales in stores and fewer items sold at a discount.
Successive management teams have struggled to return the household brand to previous levels of profit, and Chief Executive Officer Stuart Machin’s measures now are starting to show results.
M&S is trying to broaden the appeal of its high-end grocery division by selling more staples and offering more affordable prices to encourage shoppers to use M&S for their full weekly shop rather than just occasional purchases. The retailer has also been closing some stores while opening food shops under a new format.
In clothing, M&S is focused on improving the range and selling more third-party labels. Chairman Archie Norman appointed Machin last year along with Katie Bickerstaffe as co-CEO with a focus on apparel. While sales are improving in stores, the company said online clothing transactions are more subdued.
In May, the company didn’t give specific profit guidance for the 2024 financial year. At the time Machin said the company was being conservative as it didn’t want to “over-promise and under-deliver.”
Read More: M&S Surges as Long-Awaited Turnaround Finally Shows Results
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