UK's M&S posts sales growth of 9.9% to £11,988 mn in FY23

Statutory revenue for the period also increased by 9.6 per cent from FY22, reaching £11,931.3 million. However, the group reported a decrease in profit before tax and adjusting items to £482 million, compared to £522.9 million in the prior year.

Despite a dip in profits, M&S reported a statutory profit before tax of £475.7 million in FY23, a considerable improvement from £391.7 million in the previous year. Adjusted basic earnings per share (EPS) were down by 16.6 per cent to 18.1 pence, reflecting the impact of the business rates relief in the previous year. Basic EPS, on the other hand, saw a rise of 17.8 per cent to 18.5 pence, attributable to the reduced net charge for adjusting items, the company said in a media release.

The clothing and home segment showed robust growth, largely driven by a renewed focus on the modern mainstream customer. Both in-store and online sales showed considerable improvements. Average weekly footfall increased by 12.5 per cent after COVID-19 restrictions were lifted during the first quarter, contributing to an increase in transactions. UK clothing and home store sales increased 14.9 per cent, with all clothing store formats seeing an improvement in sales.

International sales rose by 11.2 per cent at constant currency, despite the impact of the exit from Russia and on-going EU border-related costs. Demand for clothing from global partners helped recover profits in the international sector.

Stuart Machin, chief executive, said: "One year in, our strategy to reshape M&S for growth has driven sustained trading momentum, with both businesses continuing to grow sales and market share. Our clothing and home businesses invested in value to protect customers from the full force of inflation which, whilst impacting margin, was the right thing to do, as serving our customers well is the only route to delivering for our shareholders.

“Clothing and home retained market-leading value perception, and its style credentials continue to improve. Sales were up in store and online, supported by growth in click and collect sales, active app users and Sparks loyalty membership; demonstrating the emerging power of our omni-channel model. The store rotation and renewal programme delivered strong sales uplifts and will accelerate this year, including the opening of five brand defining full-line stores in major cities.”

ALCHEMPro News Desk (DP)