Marks and Spencer shares rise after positive first half performance
16 November 2012
Group sales at Marks and Spencer rose by 0.9% to reach £4.7 billion during its financial first half, yet underlying pre-tax profits nevertheless fell by 10% from £321 million to £290 million over the past year.
The company’s half year results for the 26 weeks ending on 29 September 2012, show that total revenue generated from general merchandise fell by -2.5%, yet food revenues increased by +3.4% and by +1.1% on a like-for-like basis in the UK.
Meanwhile international revenues rose by +3.6%, and the group’s multi-channel strategy was shown to have paid off, with multi-channel revenues up by +17.8%.
Chief executive Marc Bolland said the company was pleased with its "improved performance" which saw food sales outperform the market.
"We are pleased to report a better performance across the business in the second quarter," said Bolland.
"We took steps to address the short term merchandising issues in general merchandise and as a result, we delivered an improved performance. Food outperformed the market on a like-for-like basis."
In a press statement, the group attributed this growth to providing customers with more choice, through its launch of 1,000 new lines, in line with targets to refresh 25% of its range each year. The company also highlighted the value it offers on everyday items with the launch of the Simply M&S range.
"Eighteen months in, we are making strong progress with our plan to transform M&S into an international multi-channel retailer. Our new international stores are performing well, and our multi-channel business is delivering strong growth," added Boland.
He also said the group was confident of delivering a strong festive offer, with "better than ever Christmas products".
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