Marks & Spencer expects a higher profit in the current financial year after a strong start of the year, with growth in all segments. This was revealed on Friday by an update of the British department store chain.
In the 19 weeks to 14 August, Marks & Spencer’s group sales increased 29 percent year-on-year and by more than 4 percent compared to the pre-coronavirus period. The different segments: Food, Clothing & Home and international showed double-digit growth compared to a year ago, with 11, 92 and 40 percent respectively.
Compared to before the pandemic, Clothing & Home and internationally recorded a contraction, while Food grew by almost 10 percent.
The UK retailer increased the outlook for the entire current fiscal year 2022, which began in april, on Friday, and is now counting on adjusted earnings before tax above the previously issued band of 300 to 350 million pounds.
The problems in the supply chain do pose a risk and can put pressure on costs and margins, Marks & Spencer warned on Friday. It is also uncertain whether strong consumer demand will continue throughout the rest of the year. The outlook increase will be rewarded by investors on Friday. Marks & Spencer’s share in London is up nearly 11 percent.