M&S expects modest revenue growth in FY24

Marks and Spencer plc reported sales of 11,988 million pounds, an increase of 9.9 percent versus 2021/22, driven by clothing & home sales up 11.5 percent, food sales up 8.7 percent and international sales up 12.6 percent.

Statutory revenue in the period was 11,931.3 million pounds, an increase of 9.6 percent.

In FY24, the company expects modest growth in revenues, driven by omni-channel as well as from the benefits of the accelerating store rotation plan.

"One year in, our strategy to reshape M&S for growth has driven sustained trading momentum, with both businesses continuing to grow sales and market share. Our food and clothing & home businesses invested in value to protect customers from the full force of inflation which, whilst impacting margin, was the right thing to do, as serving our customers well is the only route to delivering for our shareholders," said Stuart Machin, the company's chief executive.

M&S FY23 profit rises

M&S delivered profit before tax and adjusted items of 482 million pounds, while statutory profit before tax was 475.7 million pounds. Adjusted basic EPS for the year was 18.1 pence, down 16.6 percent, while basic EPS was 18.5 pence, up 17.8 percent on 2021/22

The company’s clothing & home LFL sales were up 11.2 percent. The company said in a release that while store sales outperformed, online sales were also up, with growth in click and collect sales, active app users and Sparks loyalty membership.

The company added that international sales increase was driven by demand for clothing from global partners. As a result, profits recovered despite the combined impacts of the exit from Russia and on-going EU border related costs.

Ocado Retail sales were down 1.2 percent. While active customers grew, revenues reflected reduced volumes as a result of lower shopping frequency post-pandemic.

Commenting on the dividend policy, the company said, the group suspended dividend payments at the start of the pandemic to protect the balance sheet, however, with the business generating an improved operating performance and having a strengthened balance sheet with credit metrics consistent with investment grade, the board plans to restore a modest annual dividend to shareholders, starting with an interim dividend at the results in November.