Marks and Spencer Group (LON:MKS) has provided an update on trading and outlook for the year.
The first 19 weeks of the year1 has seen continued market share growth in both the Clothing & Home and Food businesses, and good progress on the programme to reshape M&S.
· Like-for-like Food2 sales grew over 11%. We made further investment in quality and trusted value, sharpening prices on over 80 ‘Remarksable Value’ lines.
· Like-for-like Clothing & Home sales grew over 6%, with strong growth in stores, and more subdued growth in online. Sell through rates have been robust and stock into sale was lower than planned.
Overall, group operating margin has continued to be robust, driven by strong store performance and enhanced by our store rotation and renewal programme.
There remain considerable uncertainties about the economic outlook, and there is a risk that the consumer market will tighten as the year progresses. Nevertheless, we now expect the outcome for the year to show profit growth on 2022-23, and the interim results to show a significant improvement against previous expectations.
Marks and Spencer Group interim results, for the 26 weeks ending 30 September will be reported on 8 November 2023.
1. Trading for the 19 weeks ended 12 August 2023.
2. Food sales growth does not include the impact of 3rd party sales by Gist Limited. In addition, Ocado Retail sales are not included and are reported separately by Ocado Group plc.
