Following a better-than-expected 17.2% increase in first-half earnings, driven by increases in market share, British retailer Marks & Spencer forecasted “further progress” for the remainder of the fiscal year, further demonstrating the effectiveness of its most recent turnaround plan.
Under CEO Stuart Machin, M&S is enjoying the fruits of an expensive initiative to enhance the value and quality of its products, revamp its store estate, modernise its supply chain, and strengthen its technology and e-commerce operations after more than ten years of unsuccessful resurrection attempts.
In the six months ending September 28, the firm reported a profit before tax and adjusting items of 407.8 million pounds ($524.6 million), which was higher than the 348.1 million pounds earned during the same period last year and the 361 million pounds predicted by analysts.
Sales of apparel and household goods increased 4.7%, while revenue increased 5.7% to 6.48 billion pounds.
“Overall, trading is proceeding according to plan for the first five weeks of the second half, and we anticipate continuing to make improvements for the rest of the year,” stated M&S.
However, M&S issued a warning, stating that the consumer situation was unpredictable and that their cost inflation in the first half was significantly higher than overall inflation. It anticipates that background will continue into the second half.
