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M&S has reported its profit before tax soared by 75.3% to £360.2m in the first half of the year, up from £205.5m the prior year, as its Food and Clothing and Home businesses both outperformed the market.
Overall sales increased by 10.8% to £6.1bn in the period, compared to £5.5bn the previous year.
Food sales grew 14.7% with LFL sales up 11.7%. The company attributed the growth to further investment in trusted value, category resets in basket building areas such as grocery and homecare, and on-going quality upgrades of products in key customer missions, such as Dinner for Tonight.
Clothing and home sales grew 5.7% with LFL sales up 5.5%, with store sales outperforming online. Online sales grew 4.6% as a result of robust full price sales and growth of click and collect.
International sales increased 3.9% while Ocado retail sales increased 6.9%, supported by the Big Price Drop campaign and an increase in the M&S range available on Ocado’s website.
The company has said that trading momentum has been maintained throughout October and that during the first half of the year it has further progressed with the strategy to reshape its growth and value creation. Savings of over £100m were delivered in the first half and a productive estate of 180 full line stores and 400 M&S-operated stores the company expects to reach by FY28.
Stuart Machin, chief executive, said: “Sales growth was supported by our investment in store rotation, which continued at pace. Three full line stores opened and six were renewed, all attracting new customers and performing ahead of plan. Our cost reduction programme is on track with over £100m savings delivered in the half and investment in supply chain modernisation driving efficiencies, translating volume growth to improved margin and profitability.
“Looking ahead, trading momentum has been maintained through October, with customers responding positively to our Christmas ranges. There will be challenges and headwinds in the year ahead and progress won’t be linear, but we are ambitious for future growth and are driving what is in our control. Everyone at M&S makes change happen and I want to thank my colleagues for their contribution to these results.”
