National retailer Marks and Spencer (M&S) has reported a growth in sales and profit.
According to its full year results for 52 weeks ended 1 April 2023, total group sales rose 9.6% to £11.9bn from £10.8bn in 2022. Pre-tax profit resulted at £475.7m, up 21.4% from £391.7m.
M&S said that its Clothing & Home division saw sales grow 11.5% to £3.72bn, with store sales up 14.9% and online revenues up 4.8%. Clothing & Home adjusted operating profit resulted at £323.8m (2021/22: £330.7m, including £35.2m rates relief).
“Clothing & Home grew sales 11.5% with LFL sales up 11.2% driven by a more confident approach to buying and a focus on the modern mainstream customer, which is starting to drive better style perceptions. While store sales outperformed, online sales were also up, with growth in Click and Collect sales, active App users and Sparks loyalty membership. Volume and value market shares increased,” M%S said.
Stuart Machin, Chief Executive, added: “One year in, our strategy to reshape M&S for growth has driven sustained trading momentum, with both businesses continuing to grow sales and market share. Our Food and Clothing & Home businesses invested in value to protect customers from the full force of inflation which, whilst impacting margin, was the right thing to do, as serving our customers well is the only route to delivering for our shareholders.
“Food outperformed the market, with customer perception for quality and value the highest in six years. The benefits of the Gist acquisition and operational efficiencies also supported an improved performance in the second half. Clothing & Home retained market-leading value perception, and its style credentials continue to improve. Sales were up in store and online, supported by growth in Click and Collect sales, active App users and Sparks loyalty membership; demonstrating the emerging power of our omni-channel model.
“The store rotation and renewal programme delivered strong sales uplifts and will accelerate this year, including the opening of five brand defining full-line stores in major cities. Our disciplined approach to capital allocation means we can invest for growth, while further reducing net debt and maintaining investment grade credit metrics, and we plan to resume dividend payments at our interim results.”