M&S reports strong Christmas trading, home & clothing sales improve 4.8 percent

Clothing & home sales at Marks and Spencer Group (M&S) increased 4.8 percent over the Christmas trading period, with LFL sales also up 4.8 percent driven by growth in average selling price, partly a result of reduced promotions year-on-year.

The company's total UK sales including food and home & clothing increased 8.5 percent to 3,568 million pounds with LFL growth of 8.1 percent. Total group sales increased 7.2 percent to 3,856 million pounds over the period under review.

Commenting on the Christmas trading update, Stuart Machin, M&S chief executive said: “In Clothing & Home, style perception continued to improve and we maintained our lead on quality and value, delivering an increase in full price sales mix and our highest full price market share for over a decade.”

M&S posts strong sales growth

The company said in a release that the segment’s market share increased, led by the strong performance of womenswear, supported by improved customer perceptions of style, quality and value.

Clothing & home store sales increased 2 percent, with new full line stores performing ahead of plan. Online sales grew 10.9 percent, with improved carrier service levels compared with last year and strong demand for click and collect.

The company added that knitwear, denim, and Autograph lines performed well. Full price sales mix improved and stock into sale reduced 6 percent year-on-year.

International sales were down 6.4 percent, largely driven by the planned timing of franchise shipments in the Middle East and Asia and more challenging market conditions in India.

M&S expects to meet market expectations for FY24

As the company enters the new year and FY25, expectations for economic growth remain uncertain, with consumer and geopolitical risks. However, following the strong Christmas trading performance, the company expects that the results for the year will be consistent with market expectations.

“We enter 2024 with a spring in our step, but clear eyed on the near-term challenges. We are determined to deliver our objective of driving 1 percent growth in market share in both businesses and to up the pace of our transformation,” added Machin.