For the second time this year, Marks & Spencer is raising its profit forecast. The favourable figures reinforce the retailer’s belief that its transformation plan is bearing fruit.
Better than pre-Covid
In the six months leading up to 2 October, pre-tax profits amounted to 269.4 million pounds (315 million euros). With this, the British retailer has far exceeded the expectations set by analysts. In the same period last year, Marks and Spencer had suffered a loss equivalent to 20 million euros, ESM writes.
The retailer, which recently launched an optician service, has raised its profit forecast to 500 million pounds (almost 600 million euros) for the full year. This summer, Marks & Spencer had already revised its profit forecast favourably.
Results were also above pre-Covid levels, with food sales up 10.4 % compared to 2019. While sales of clothing and household goods fell by 1 %, sales of items at full price rose by over 17 %.
Transformation plan
For some time, Marks & Spencer has been working on a transformation plan, focusing on turning around its outdated culture, improving its offerings and e-commerce. According to the company, the Covid pandemic has somewhat masked the progress that has been made.
“Thanks to the hard work of our colleagues, it is clear that underlying performance is improving, with our main businesses making important gains in market share and customer perception. The hard yards of driving long term change are beginning to be borne out in our performance,” CEO Steve Rowe explained.
