UK retailer M&S' sales soar 9.4% in FY24

Adjusted basic earnings per share (EPS) climbed by 45.6 per cent to 24.6p, reflecting the higher adjusted profit during this period. Basic EPS increased by 18.4 per cent to 21.9p, correlating with the overall rise in profit, the company said in its financial results for 52 weeks ended March 30, 2024.

In the clothing and home segment, overall sales grew by 5.3 per cent, with like-for-like (LFL) sales up by 5.2 per cent. This growth was bolstered by an improved gross margin driven by full-price sales growth and benefits from a structural cost reduction programme. Consequently, adjusted operating profit in this segment increased to £402.8 million, yielding a 10.3 per cent margin, up from £323.8 million (8.7 per cent margin) last year. The heartland categories of women’s and menswear performed exceptionally well, attributed to enhancements in product style, quality, and value.

Store sales saw a rise of 4.1 per cent, with notable performances in shopping centre and retail park stores. Online sales experienced a robust increase of 7.8 per cent.

However, international sales, excluding the Republic of Ireland, declined by 1 per cent at constant currency, amounting to £719.1 million. This decline was due to weaker sales growth in the second half of the fiscal year and actions taken to reduce stock levels. As a result, adjusted operating profit for international operations decreased to £47.7 million (6.6 per cent margin) from £67.9 million (9.1 per cent margin) last year.

“Two years into our plan to reshape for growth we can see the beginnings of a new M&S. Clothing & Home grew volume and value share ahead of the market and sales increased across stores and online. We are becoming more relevant, to more people, more of the time,” said Stuart Machin, chief executive.

Fibre2Fashion News Desk (DP)