by James Davey
(Reuters) – Marks & Spencer upgraded its full-year profit forecast on Tuesday as the British retailer said it was continuing to gain market share in its clothing, home decor and food businesses.
The group said it now expects profit growth for the whole of the 2023-24 financial year, while it previously forecast a slight decline.
The half-year results, expected in November, should show “significant improvement” compared to previous expectations, the group added.
The Marks & Spencer title took 8.1% at 8:09 GMT.
M&S, like other major retailers, benefited from strong consumer spending despite a cost of living crisis entering its second year in Britain, driven by 14 consecutive interest rate hikes. interest to fight inflation.
Earlier this month, clothing retailer Next raised its profit forecast for the second time in three months.
In the first 19 weeks of the year, like-for-like food sales were up more than 11%, while apparel and home sales were up more than 6% on the same basis , said M&S. The operating margin “remained solid”.
The group said it was making good progress in its corporate restructuring program, but warned of uncertain economic conditions.
“The economic outlook remains highly uncertain and the consumer market is likely to tighten as the year progresses.”
(Reporting James Davey in London and Yadarisa Shabong in Bangalore, Augustin Turpin, editing by Kate Entringer)
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