The boss of Marks & Spencer declared yesterday that the company was in its “best financial health” for more than a quarter of a century, as profits soared.
Revealing annual results described as “dazzling” by one analyst, Stuart Machin said “we are at the beginning of a new M&S” as it appeals to a broader base of shoppers.
And in the clearest sign yet that its revival plan is bearing fruit, the High Street stalwart said profits rose 58 per cent to £716m in the year to the end of March.
‘We have the wind at our back, confidence that our plan is working and a clear vision for the future.
We have many more opportunities ahead of us,” said Machin, who has continued to implement a turnaround plan initiated by president and retail veteran Archie Norman.
In the pink: Marks & Spencer, which currently projects a “fresh summer” image, has seen its profits rise 58% to £716m in the year to the end of March.
Both arms of the business saw products fly: food sales increased 13 percent, while clothing and home sales increased 5.3 percent.
EM Share rose almost 10 per cent to 300 pence in early trading – the highest level in six years – before closing yesterday up 5.2 per cent, or 14.2 pence, at 288 pence.
Investors praised the progress when the company said it would pay out a dividend of 3 pence per share, its first concession since 2019.
“This is an incredibly impressive set of results, demonstrating that the transition strategy implemented by the current management team is really starting to pay off,” said Redwheel’s Ian Lance, its third largest shareholder.
“What’s so exciting is that it appears this turnaround strategy still has some way to go, and yet this is not yet reflected in the share price as many investors remain skeptical of the recovery story. Marks’ recovery.
After years of its fashion lines being derided as “disgusting”, the retailer has bolstered its credentials and managed to attract new, younger shoppers.
It’s also back in style, thanks to star-studded partnerships including actress Sienna Miller and Ted Lasso star Hannah Waddingham.
As for food, new customers have flocked to the stores “from a broad spectrum of retailers,” including for their weekly big-box stores, Machin said.
Bumper sales mean it is now hot on the heels of Central England rival Waitrose.
Change of direction: Chief executive Stuart Machin said “we are at the beginning of a new M&S” as it appeals to a broader base of shoppers.
This has helped the retailer reach its healthiest financial position since 1997, Machin said. But he promised there will be more to come, as he looks to open nine new grocery stores and renovate existing ones.
It also hopes its clothing division will attract more shoppers as its ranges become “more relevant to more people more of the time”.
M&S plans to stock more third-party fashion brands after already selling big names such as Nike, Adidas and Hunter.
Machin said: ‘We are creating a very different M&S culture, rolled up our sleeves, even closer to customers and colleagues. We always aim higher and tell it like it is.
“It’s about being absolutely dissatisfied.”
Mark Crouch, an analyst at investment platform Etoro, said the results made for “dazzling reading.”
He added: “In what has become one of the most emphatic changes seen in British retail in recent years, the story of M&S’s comeback is becoming a fairy tale for investors.”
