UK-based fashion retailer Marks & Spencer (M&S) has registered total sales increase of 5.6% at constant currency, reaching £4.06bn ($4.99bn) for the third quarter of fiscal year 2024/25.
During the 13 weeks to 28 December 2024, total sales in the UK and Ireland rose to £3.88bn, a 5.9% uplift from the previous year during the same period.
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The retailer’s clothing, home and beauty division recorded a modest uptick in sales by 1.0%, totalling £1.30bn. Like-for-like sales for this segment saw a more substantial rise of 1.9%, surpassing general market trends despite a challenging retail environment.
When accounting for the phase-out of bulky furniture product lines, underlying sales exhibited an even stronger growth of 2.6%.
A significant contributor to this quarter’s success was the online segment within clothing, home and beauty, which witnessed an impressive 11.7% increase in sales.
This surge is attributed to an expanding customer base and enhanced product accessibility, with online transactions now representing 34% of total sales for the period, up from 31% the preceding year.
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By GlobalDataConversely, physical store sales experienced a slight downturn of 1.5%, partially ascribed to adverse weather conditions impacting shopper footfall.
The group’s food division also registered 8.7% jump in sales, amounting to £2.58bn, and like-for-like sales also ascending by 8.9%.
This growth is credited to strategic investments in product quality and value propositions, complemented by the introduction of 500 novel product lines within the quarter.
M&S chief executive Stuart Machin said: “This was another good Christmas for M&S, building on a strong performance in the prior year. Sales records were broken across the business, with Food recording its biggest day and Clothing, Home and Beauty online its biggest week, but we’re not complacent – as a growth business it’s our job to break records.”
Looking ahead, the company has indicated that as the calendar turns, the forecast for economic expansion, inflation trends, and interest rate movements remains unclear. The retailer acknowledges it is confronting elevated expenses due to ‘well-documented’ tax hikes.
Nonetheless, M&S emphasises its commitment to capitalizing on significant prospects by concentrating on internal factors it can influence while restructuring the business for future expansion.
Machin further stated: “The external environment remains challenging, with cost and economic headwinds to navigate, but there is much within our control. At M&S, we stay close to our customers and their needs, and with that in mind our investment in trusted value, along with great quality, style and innovation remains our priority.”
