(News Bulletin 247) – Marks and Spencer announced on Tuesday that it expects an increase in its annual profit, thanks not only to the favorable evolution of its recovery plan, but also thanks to market share gains which operate on a broad front.
The British distributor indicates that it saw its like-for-like food sales increase by more than 11% over the first 19 weeks of its staggered fiscal year, a rate well above the expectations of RBC analysts (+8%).
The group justifies the strength of its activity by the price reductions it has granted on more than 80 products deemed essential (eggs, milk, meat, bread, pasta, vegetables, etc.).
Sales excluding food from its stores that have been open for at least a year have meanwhile increased by 6% over the 19 weeks ended August 12, a performance here again superior to the forecasts established by RBC (+3.5%).
M&S also points out that its operating margin has remained ‘robust’, despite the ‘considerable’ uncertainties surrounding the current economic outlook.
According to the group, there is indeed a risk that consumers will reduce their spending in the coming months.
The retailer expects its full-year profit to grow in the current financial year and its half-year results to show a “significant improvement” compared to previous estimates.
Its accounts for the first half ended September 30 will be published on November 8.
Listed on the London Stock Exchange, its title jumped 8.6% on Tuesday in the first trade following this encouraging point of activity.
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