Trading Update and Outlook for the Year
Marks and Spencer Group plc
MARKS AND SPENCER UPDATES ON STRONG TRADING AND OUTLOOK FOR THE YEAR
The first 19 weeks of the year1 has seen continued market share growth in both the Clothing & Home and Food businesses, and good progress on the programme to reshape M&S.
· Like-for-like Food2 sales grew over 11%. We made further investment in quality and trusted value, sharpening prices on over 80 'Remarksable Value' lines.
· Like-for-like Clothing & Home sales grew over 6%, with strong growth in stores, and more subdued growth in online. Sell through rates have been robust and stock into sale was lower than planned.
Overall, group operating margin has continued to be robust, driven by strong store performance and enhanced by our store rotation and renewal programme.
There remain considerable uncertainties about the economic outlook, and there is a risk that the consumer market will tighten as the year progresses. Nevertheless, we now expect the outcome for the year to show profit growth on 2022-23, and the interim results to show a significant improvement against previous expectations.
Interim results, for the 26 weeks ending 30 September will be reported on 8 November 2023.
For further information, please contact:
Investor Relations:
Fraser Ramzan: +44 (0) 7554 227 758
Sandeep Dasgupta: +44 (0) 7868 735 381
Media enquiries:
Corporate Press Office: +44 (0)20 8718 1919
1. Trading for the 19 weeks ended 12 August 2023.
2. Food sales growth does not include the impact of 3rd party sales by Gist Limited. In addition, Ocado Retail sales are not included and are reported separately by Ocado Group plc.
-End-
Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences and prospects are "forward-looking statements" within the meaning of the United States federal securities laws. These forward-looking statements reflect Marks & Spencer's current expectations concerning future events and actual results may differ materially from current expectations or historical results. Any forward-looking statements are subject to various risks and uncertainties, including, but not limited to, failure by Marks & Spencer to predict accurately customer preferences; decline in the demand for products offered by Marks & Spencer; competitive influences; changes in levels of store traffic or consumer spending habits; effectiveness of Marks & Spencer's brand awareness and marketing programmes; general economic conditions including, but not limited to, those related to the Covid-19 pandemic or a downturn in the retail or financial services industries; acts of war or terrorism worldwide; work stoppages, slowdowns or strikes; and changes in financial and equity markets. For further information regarding risks to Marks & Spencer's business, please consult the risk management section of the 2023 Annual Report (pages 56-65).
The forward-looking statements contained in this document speak only as of the date of this announcement, and Marks & Spencer does not undertake to update any forward-looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
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