British retailer Marks & Spencer (M&S) has revised its profit outlook upward, citing increased demand in its stores as a key driver in attracting new customers to its clothing, home, and food segments.
The company, established 139 years ago, has experienced a remarkable 66% surge in its shares this year. This positive momentum has led M&S to anticipate profit growth for the entire 2023-24 fiscal year, a departure from its earlier projection of a slight decline. This announcement prompted an 8% surge in its share value.
M&S's unexpected statement promises a "significant improvement" compared to previous expectations, boosting not only its own share prices but also those of fellow retailers such as Next and Primark's owner. The company reported robust growth in like-for-like food sales and clothing & home sales for the first 19 weeks of the year, accompanied by a solid group operating margin.
However, M&S remains cautious due to ongoing economic uncertainties, acknowledging the potential for a tighter consumer market as the year unfolds. The company is actively working to fortify its business by emphasizing the quality and value of its products, investing in technology and e-commerce, and implementing an extensive overhaul of its store network.
Despite historical challenges in attracting younger, fashion-forward customers while retaining its reputation for high-quality essentials, recent improvements in fashion range delivery speed and pricing adjustments for certain food items have garnered positive feedback. Market sentiment around M&S is gradually improving, reflecting the company's dedicated efforts to enhance profitability and customer appeal.
