UPDATE 2-M&S' Christmas food sales thrive but fashion falters

Chief Executive Stuart Machin said a record number of customers shopped with M&S, driving a 5.6% rise in like-for-like food sales in the ​quarter to December 27 year-on-year and a return to growth online in clothing. "Food sales were strong ‍and the business continues to outperform, hitting a new market share milestone in the period," he said on Thursday.

Britain's Marks & Spencer saw strong demand for its upmarket food at Christmas, but shoppers spent less on ⁠fashion, home and beauty in its stores, compounding the lingering impact from last year's cyber hack. Chief Executive Stuart Machin said a record number of customers shopped with M&S, driving a 5.6% rise in like-for-like food sales in the ​quarter to December 27 year-on-year and a return to growth online in clothing.

"Food sales were strong ‍and the business continues to outperform, hitting a new market share milestone in the period," he said on Thursday. "Fashion, Home & Beauty is getting back on track as we work through the tail end of recovery."

Sales of clothing in its stores fell, reflecting subdued consumer ⁠confidence, ‌milder weather and residual ⁠cyber hack-related stock issues, M&S said. Overall, like-for-like sales in fashion, home and beauty were down 2.9%

Shares in M&S were up 3% in ‍early deals Thursday, paring losses over the last year to 10%. AJ Bell's head of markets Dan Coatsworth said M&S ​had gone back to its old days, where strong food sales offset weak clothing.

"The clothing arm had ⁠a poor festive period, and it was telling that M&S held a bigger than usual Sale to help clear stock," he said. "It didn't ⁠help that high street footfall was weak in general, meaning that M&S missed on valuable passing trade which typically helps to keep the tills ringing."

In November, M&S said it would have fully recovered ⁠from April's cyber hack by the end of its year to March 2026, forecasting second-half profit "at least" in line ⁠with last year. It said ‌on Thursday its full-year guidance was unchanged.

Its profit in the first half slumped 55.4%, after the shutdown of its online operation caused fashion, home and beauty sales ⁠to slide 16.4%.

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