M&S shares soar as first-half profit smashes forecasts
By James Davey
LONDON (Reuters) — Marks & Spencer (OTC:MAKSY) (M&S) expects full-year profit to leap more than 30% after an overhaul of its food, fashion and supply chain helped the British retailer smash first-half forecasts, sending its shares soaring on Wednesday.
First-half profit jumped 75%, the dividend was reinstated as promised, and the company said shoppers were already snapping up its Christmas ranges.
The results show M&S, one of the biggest names in British business, 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 now expects analysts' consensus forecast for annual profit to rise to 640 million pounds ($785 million) from 575 million pounds currently, versus 482 million pounds in 2022/23.
«Another very strong set of results which demonstrates that the strategy to re-shape the business is really starting to deliver,» Ian Lance, fund manager at Redwheel, one of M&S's biggest shareholders, told Reuters.
Other investors agree. After more than a decade of failed turnaround efforts, the share price has more than doubled over the last year. It rose 10% on Wednesday, giving M&S a market valuation of just under 5 billion pounds.
The 139-year group, led by CEO Stuart Machin, said its trading momentum had been maintained through October and it was planning for a good Christmas, with customers already responding positively to its ranges.
It said investments in its supply chain, which have enabled it to source popular clothing styles more quickly, had led to an increase in the volumes it sold, plus an improvement in its profitability.
It did warn,
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