UK retailer Marks & Spencer raises profit outlook, shares jump 9%

livemint.com:

Reuters. Shares of the 139-year old Marks & Spencer jumped 9% after the forecast. M&S has risen 66% so far this year.

The UK retailer has benefited from robust consumer spending and by providing high quality food. The retailer is trying to broaden the appeal of its high-end grocery by selling more staples and at affordable rates to consumers. M&S has closed some stores while opening food shops.

In the first 19 weeks of the year, like-for-like food sales grew over 11%, while clothing & home sales rose more than 6% on the same basis, said Marks & Spencer. Group operating margin continued to be robust, it also said. M&S chairman Archie Norman appointed Machin last year along with Katie Bickerstaffe as co-CEO to focus on improving the clothing range and selling more third-party labels.

“Under CEO Stuart Machin, M&S is seeking to build a more resilient business with a focus on the quality and value of its clothing and food, heavy investment in technology and e-commerce, and a radical overhaul of its store estate," said the Reuters report. On profit outlook for the fiscal year 2024, in May Machin had said that the company was being conservative as it didn’t want to over-promise and under-deliver. Earlier this month, another British fashion retailer Next also upgraded its annual profit forecast by 10 million pounds to 845 million pounds.

Next had said that it sees full year price sales 1.8% higher than in 2022-23 fiscal year. In recent weeks, both retailer Primark and Sports Direct-owner Frasers Group have issued positive updates on sales. (With inputs from agencies)