UK retailer Marks and Spencer (M&S) has recorded revenue of £6.48bn ($8.84bn) for the first half (H1) of 2024 – a 5.7% increase from £6.13bn in the same period of the previous year.
Profit before tax (PBT) and adjusting items rose 17.2% to £407.8m, up from £348.1m in 2023.
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The company’s operating profit before adjusting items also saw a rise, reaching £462.7m compared to £410.4m in the same period in 2023.
Basic earnings per share were up from 10.6p in the first half of 2023 to 14.0p in the same period in 2024.
Overall, group sales increased by 5.8% to £6.52bn. Food sales saw an 8.1% increase, with like-for-like (LFL) growth of 7.5%, largely driven by a 6.5% rise in UK volume.
Clothing and home sales grew by 4.7%, with LFL sales rising by 5.3%. Sales growth in the second quarter (8.1%) was stronger than in the first quarter (1.3%), benefiting from more seasonal warmer weather.
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By GlobalDataThroughout the first half of the year, cost inflation remained high, outpacing price inflation, and consumer confidence has been unpredictable.
But despite these challenges, the business has performed well, gaining both volume and value market share. Shares in the group were up 6.6% to 408p in early trading.
The period also saw the opening of two food halls in new full line stores, and three new standalone stores.
Two new full line stores in Dundee and Washington Galleries began operations, with their clothing and home sales exceeding expected levels by 13%.
Group net debt reduced from £2.56bn in the first half of 2023 to £2.16bn, driven by lease repayments.
Marks and Spencer chief executive Stuart Machin said: “The business remains in robust financial health. We have improved our return on capital employed to 15% and further strengthened our balance sheet, giving us the capacity and flexibility to invest for growth and deliver structural cost reduction, demonstrating our ability to deliver value for shareholders.
“The recent [October 2024] budget’s long-term impact on M&S, our suppliers and our customers is for now uncertain. Meanwhile, we are confident and we remain on track and focused on what is in our control. We have the best Christmas food range I’ve seen in my time at M&S and the most stylish seasonal clothing offer yet, and we know customers are looking forward to celebrating Christmas with M&S.”
Looking ahead to the second half of 2024, the company anticipates that broader economic conditions will remain unchanged.
However, trading in the first five weeks of the second half has been in line with expectations, and it remains confident in its ability to make continued progress.
In May 2024, Marks and Spencer reported a 41.4% increase in profit before tax for the fiscal year 2023/24, reaching £672.5m, a rise from £475.7m in the previous fiscal year.
