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Marks & Spencer‘s finances are in the best shape they have been in since 1997, according to the British chain of department stores. Sales rose by almost 10 %, profit by more than 40 %.
Huge profit growth
Against the expectations of many, Marks & Spencer has managed to turn things around. The quintessential British department stores chain saw sales rise by 9.4 % to 13 billion pounds (15 billion euros) last year, while pre-tax profits grew by a spectacular 41.4 % to 672.5 million pounds (790 million euros).
This growth was mainly driven by the food and clothing divisions, which grew by 13 % and 5.3 % respectively. This means that the retailer’s turnaround plans are bearing fruit, as M&S has deliberately opened more food shops and closed other less profitable shops in recent years. Clothing sales have been driven mainly by menswear, denim and lingerie: last year the chain sold 114 items of underwear per minute.
Marks & Spencer says that its financial health has not been this good since 1997. It’s even “the beginnings of a new M&S”, the Financial Times quotes CEO Stuart Machin. “We have wind in our sails, confidence that our plan is working… and there’s so much more opportunity ahead of us.” The chain now wants to become a complete shopping destination again, not just for special occasions or top-ups.
