Marks & Spencer upgrades profit guidance
18 August 2023
In an unscheduled trading update, Marks & Spencer has announced that due to better-than-expected trading, profit for the year is expected to be above its previous guidance.
M&S now expects profit to grow versus last year and the interim results to show a significant improvement against previous expectations.
Charlie Huggins, manager of the quality shares portfolio at Wealth Club, commented: “Following on the heels from Next’s recent profit upgrade, M&S has also announced that it expects profit for the year to be above expectations. This is evidence that the UK consumer is still spending, despite the gloomy economic headlines.
The results are also testament to the group’s progress against its strategy, launched last year. This aims to improve brand perception and designs, reduce discounting, and improve the online offering, while taking a knife to costs and instilling a more entrepreneurial culture. Today’s trading update suggests this plan is resonating with consumers with M&S continuing to increase its market share in clothing and home.
M&S cautions that there are still “considerable uncertainties about the economic outlook. Nevertheless, there are more reasons for optimism now than there have been for some time.”