Marks and Spencer has reported strong half-year results, with profit before tax and adjusting items rising 17.2% to £407.8m for the 26 weeks ended September 28, 2024. The retail giant saw significant growth in its food division, where sales increased by 8.1%, while Clothing & Home sales grew by 4.7%.
Marks & Spencer shares were over 4% higher at the time of writing.
The company’s statutory profit before tax reached £391.9m, up from £325.6m in the previous year. Food operations proved particularly successful, with adjusted operating profit climbing to £213.1m from £158.4m, achieving a margin of 5.1%.
Despite ongoing cost inflation running ahead of price increases and an uncertain consumer environment, M&S has maintained market share growth in both food and clothing sectors. The retailer’s food division has now recorded four consecutive years of volume and value share growth, while its clothing segment has achieved monthly market share growth over the same period.
Looking ahead, M&S executives were clearly conscious of risks to business from economic uncertainty but were fairly upbeat, noting that trading in the first five weeks of the second half remains on track.
There were some softness, the international division faced headwinds, with constant currency sales declining by 10.3% and adjusted operating profit falling to £15.2m from £32.4m in the previous year. The company has initiated an international reset under new leadership to address these challenges.