Marks & Spencer Group PLC on Thursday expressed confidence in making further progress this year following ‘another good Christmas,’ fuelled by strong sales in its Food division and steady performance in Clothing, Home & Beauty.
For the 13 weeks to December 28, the retailer reported total group sales up 5.6% year-on-year to £4.06 billion. UK and Republic of Ireland sales rose 5.9%, with Food sales jumping 8.7% to £2.58 billion
M&S said these results made the company the top-performing store-based grocery retailer during the period. Clothing, Home & Beauty sales increased 1.0% to £1.31 billion.
‘This was another good Christmas for M&S, building on a strong performance in the prior year. We sustained trading momentum,’ said Chief Executive Stuart Machin. ‘Sales records were broken across the business, with Food recording its biggest day and Clothing, Home & Beauty online its biggest week, but we’re not complacent - as a growth business it is our job to break records.’
However, shares in the London-based high street stalwart were down 5.3% at 356.75 pence each in London on Thursday morning after the results were published.
‘The company anticipates a tougher year ahead, as customers potentially retrench in light of higher for longer interest rates and the possibility of higher goods prices following the measures announced in the budget. However, for the time being M&S is strongly back in fashion with investors and customers alike’, said Richard Hunter, head of Markets at Interactive Investor
M&S attributed the Food division’s success to a focus on quality, innovation, and trusted value, with the launch of 500 new products and a 14% rise in sales of new Christmas items. Core categories like meat, produce, and in-store bakery experienced double-digit growth, while the Gastropub range performed ‘strongly’ as customers sought premium alternatives to dining out.
The Clothing, Home & Beauty division benefited from increased online sales, which grew almost 12%, representing 34% of the segment’s total sales. Categories like denim and knitwear ‘outperformed’, though store sales fell 1.5%, with M&S alleging it was partly due to weather-related disruptions.
International sales declined 2.8%, largely due to ‘challenging market conditions’ in India and the timing of franchise shipments.
Looking ahead, M&S acknowledged the uncertain economic outlook, including inflation and rising taxes. However, it remains optimistic about opportunities for growth and reaffirmed its confidence in making further progress in the remainder of the financial year.
‘We go into 2025 shifting up a gear and raring to go as we accelerate the scale and pace of change’, CEO Machin added.
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