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(Reuters) -British retailer Marks & Spencer (OTC:MAKSY) raised its profit outlook on Tuesday, saying it was continuing to win market share in both its clothing, home and food businesses, adding to evidence that its latest turnaround strategy is delivering.
The 139-year old group, whose shares have risen 66% so far this year, said it now expected profit growth in its full 2023-24 year, having previously forecast a small decline.
It said its interim results, due to be published in November, would show “a significant improvement” against previous expectations.
M&S, like other major retailers, has benefited from consumer spending holding up well despite a cost of living crisis entering its second year in Britain, driven by 14 consecutive interest rate rises designed to tackle stubbornly high inflation.
Earlier this month, clothing retailer Next upgraded its profit forecast for the second time in three months.
M&S said in the first 19 weeks of the year like-for-like food sales grew over 11%, while clothing & home sales were up over 6% on the same basis. Group operating margin “continued to be robust”.
The group said it was making good progress on its programme to reshape the business.
Under CEO Stuart Machin, M&S is seeking to build a more resilient business with a focus on the quality and value of its clothing and food, heavy investment in technology and e-commerce, and a radical overhaul of its store estate.
The group did, however, caution: “There remain considerable uncertainties about the economic outlook, and there is a risk that the consumer market will tighten as the year progresses.”
