High street giant Marks & Spencer has cheered robust sales growth across its resurgent clothing arm and food halls, but revealed half-year profits dropped by nearly a quarter.
The retailer reported a 23.7% tumble in underlying pre-tax profits to £205.5 million in the six months to October 1 as it took a hit from investing in food prices and higher costs, as well as more difficult trading in its Ocado retail joint venture.
Profits were also knocked by the cost of higher property taxes and its exit from Russia.
M&S said like-for-like sales jumped 13.7% across its clothing and home division as its bounceback gathers pace, while comparable sales lifted 3% in its food business.
The group warned of “more challenging” trading ahead in the cost crisis and said it was looking to cut costs by around £150 million in 2023-24 to offset soaring inflation and help it weather the storm.
Stuart Machin, chief executive of M&S, said: “Trading in the first half has been robust, with both businesses growing ahead of the market, reflecting the beginnings of a reshaped M&S.”
He added: “This progress means we face into the current market headwinds with an increased resilience and level of confidence.
“Looking beyond the current stormy weather, much is in our control and our mandate is clear – to step up the pace, accelerate change, drive a simpler, leaner business and invest in growth opportunities to build a reshaped M&S.”
