UK retailer M&S earns £522.9 mn profit in FY22

The online channel of the company experienced a growth of 55.6 per cent, while stores were down by 11.2 per cent, M&S said in its full year results for FY22.

“Clothing & home delivered 3.8 per cent sales growth, driven by online sales. We shifted to trusted value, reducing option count by c.20 per cent over three years, which resulted in good growth in core categories and a reduction of stock into sale. Operating profit before adjusting items grew strongly, reflecting the improved full-price mix. MS2 made multiple improvements to the online offer and service, with around 11 per cent of orders fulfilled from store. We have successfully grown the Sparks programme to 15 million members and app users to over 4 million and have begun to personalise customer experience. The nascent brands platform now has around 40 clothing brand partnerships, own or invested brands,” the company said.

As expected, category performance over the two pandemic years has been greatest in core casual categories, sleepwear and soft furnishings. Following the reopening of the economy in July 2021, the slow return to offices, combined with greater mobility, has led to a gradual improvement in formal ranges, elements of footwear and holiday.

Womenswear has driven good growth in the ‘big three’ departments of denim, knitwear and casual tops. A focus on simple, repeatable styles in dresses, supported by popular collaborations with brands such as Ghost, has resulted in a very strong performance. The Goodmove activewear brand has grown to over £65 million in two years.

Lingerie has seen a recovery over the past year in core areas such as sleep, underwear and bras. A focus on sharper value through multi-packs at opening price points has combined with new stretch offers such as ‘Boutique’ and the launch of the ‘Neutrals’ range.

Menswear was impacted in the pandemic by its high formal and office-wear shares. We saw good growth in jersey, knitwear and underwear, although following reopening availability in formal categories was below target.

Kidswear’s increased focus on daywear has combined with growth in schoolwear to deliver double-digit sales growth. The growth of M&S Kids provides an important entry point to the brand for family-age customers.

Home ranges have been reshaped, with pricing realigned to the market in areas such as bed linen, lighting and curtains. Furniture ranges are being upgraded and losses have reduced.

ALCHEMPro News Desk (KD)