M&S clothing & home category records 14 percent sales growth

M&S clothing & home category delivered 14 percent sales growth and LFL sales increase of 13.7 percent for the first six months to October 1, 2022. The group's revenue increased 8.5 percent to 5.54 billion pounds.

The company's first-half pre-tax profit grew 11.3 percent to 208.5 million pounds, while basic earnings per share increased 3.7 percent to 8.5 pence. Adjusted pre-tax profit was 205.5 million pounds, compared to 269.4 million pounds last year and adjusted basic earnings per share were 7.8 pence, compared to 12.1 pence a year earlier.

M&S said in a release that trading in the first four weeks of the second half is in line with forecasts, with clothing & home sales up 4.2 percent. M&S expects to deliver an adjusted profit before tax in FY23 for the main businesses, including Gist, similar to the expectations set out at FY22 results.

“Clothing has delivered a stand-out performance from a market leading position in value with improving style credentials. This progress means we face current market headwinds with an increased resilience and level of confidence,” said Stuart Machin, chief executive of Marks & Spencer Group plc.

Highlights of M&S’ H1 performance

The company’s market share increased 50 bps to 9.1 percent. Store sales were up 18.8 percent with stores in city centres and shopping centres reflecting the return to more normal trading patterns, although high streets continued to lag.

The company said that online sales increased 4.9 percent and were 32 percent of total clothing & home sales, with continued strong growth in traffic and increased average order values, partly offset by higher returns rates.

The company added that womenswear grew sales 15 percent in the period despite 5 percent fewer options and the overall business had 276 lines achieving sales over 1 million pounds in the first half. Sales in these lines are up 25 percent compared to 2021/22. Womenswear saw strong growth in dresses, which were up by more than 50 percent and the ‘holiday shop’ also grew strongly.

Men’s formal shirts and smart wear were also up by more than half, reflecting improved availability and customers’ focus on key occasions such as weddings, while casual sales also grew.