LONDON (Reuters) – British clothing and food retailer Marks & Spencer (M&S) said on Wednesday its turnaround strategy showed signs of success, helping it restore its dividend and forecast “modest” growth. of its turnover this year.

After decades of failed turnaround attempts, M&S, under the leadership of Stuart Machin, seeks to build a more resilient business by focusing on the quality and value of its clothing and food products.

The 139-year-old company and one of the biggest names in British commerce, on Wednesday reported a smaller-than-expected 7.8% drop in profit for the 2022-23 financial year.

She added that she has started her new financial year well, with an increase in sales of the food, clothing and home divisions.

“While the economic outlook for consumer spending is uncertain, cost inflation remains high and market conditions are expected to become more challenging, the strategy is starting to perform better and there is still a lot under control. of the group,” M&S said.

On the London Stock Exchange, M&S shares climbed nearly 10% in the morning, the biggest increase in the Stoxx 600 index, down more than 1% at the same time.

M&S, which has not paid a dividend to its shareholders since the 2019-2020 financial year, said it plans to restore a modest coupon, with the payment of an interim dividend on the occasion of the results to be announced in November.

For the year ended April 1, M&S achieved profit before tax and adjusting items of £482 million (€544 million), above analysts’ average forecast of £436 million, but below 523 million books posted in 2021/22.

(Report James Davey; Nathan Vifflin, edited by Kate Entringer and Blandine Hénault)

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