Marks & Spencer Sees 58% Profit Surge, Outperforms Market Expectations

Marks & Spencer reported a 58% increase in annual profit, exceeding market expectations. The 140-year-old retailer credits its strong sales growth in food and clothing to strategic business reforms and a significant investment program. The company remains optimistic about continued progress in the new financial year.

British retailer Marks & Spencer reported a 58% rise in annual profit, ahead of market expectations, as its strategy to re-shape the business delivered strong sales growth in both its food and clothing divisions.

The 140-year old retailer, one of the biggest names in British business, also said on Wednesday it was confident of further progress in its new financial year. After two decades of failed turnaround efforts, M&S, under CEO Stuart Machin, is finally reaping the rewards of an expensive investment programme to improve the quality and value of its clothing and food, upgrade its technology and e-commerce operations, and radically overhaul its store estate.

It made profit before tax and adjusting items of 716.4 million pounds ($913 million) in the year to March 30 - ahead of analysts' forecasts which ranged 665-705 million pounds and the 453.3 million pounds made in 2022/23. Sales rose 9.4% to 13.1 billion pounds, with food sales up 13.0% and clothing and home sales up 5.3%.

"Given our track record of delivering volume growth, market share and free cash flow we are confident that we will make further progress in 2024/25 and beyond," M&S said. ($1 = 0.7849 pounds)