M&S posts strong uplift in sales and profit as it benefits from “reshape” strategy
Marks & Spencer has posted a jump in full year sales and profit as it declared that its Reshape for Growth strategy is working.
In the 52 weeks to 30 March, pre-tax profit before adjusting items rose to £716.4 million from £453.3 million in the previous 12 months.
Meanwhile, sales climbed by 9.4% to £13 billion after food and clothing & home sales increased by 13% and 5.3% respectively.
On a statutory basis, pre-tax profit grew to £672.5 million from a previous £475.7 million.
Stuart Machin, M&S chief executive, said: “Two years into our plan to Reshape for Growth we can see the beginnings of a new M&S.
“Food and clothing & home grew volume and value share ahead of the market and sales increased across stores and online.
“Both businesses have now delivered 12 consecutive quarters of sales growth and this trading momentum gives us wind in our sails, and confidence that our plan is working. We are becoming more relevant, to more people, more of the time.”
M&S said its investment in store rotation is beginning to pay off with new stores performing ahead of forecast and attracting new customers. In addition, its work to modernise its supply chain is supporting margin growth across both the food and clothing & home divisions.
Giving an update on its joint venture with Ocado, M&S said its share of adjusted loss in the year was £37.3 million. It said its food division has worked closely with Ocado Retail to reset the business and this has now resulted in “encouraging” active customer and sales growth.
Looking ahead, the retailer said it will continue to focus on driving volume growth in food and clothing & home to deliver on its market share and margin objectives.
Machin said: “We have made progress on ‘hardwiring’ sustainable change – how and when we execute our strategic priorities – with progress in store rotation and supply chain.
“However, we need to move faster and be ruthlessly challenging on the areas where progress has been slower, building a more effective digital and technology infrastructure, accelerating the move to a truly personalised customer experience, and resetting priorities in international.
“We have a clear plan, a clear vision for the future, and there is so much opportunity ahead of us. We are at the beginnings of a new M&S.”
