British retail giant Marks & Spencer has raised its full-year profit guidance after reporting strong sales in the year to date.
The high street retailer announced Tuesday that like-for-like clothing and home sales grew over 6 percent in the 19 weeks to August 12, with strong growth in stores, and more subdued growth online.
It said its sell through rates have been “robust” and “stock into sale was lower than planned”.
It added that group operating margin has continued to be “robust”, driven by “strong store performance and enhanced by the store rotation and renewal programme”.
“There remain considerable uncertainties about the economic outlook, and there is a risk that the consumer market will tighten as the year progresses,” the company said in a statement.
Nevertheless, we now expect the outcome for the year to show profit growth on 2022-23, and the interim results to show a significant improvement against previous expectations,” it said.
The company’s interim results for the 26 weeks ending September 30 will be reported on November 8, 2023.
In its most recent full-year results, for the 12 months ended April 1, Marks & Spencer reported a 9.9 percent increase in sales to 11.99 billion pounds, with clothing and home sales up 11.5 percent to 3.72 billion pounds.
CEO Stuart Machin said at the time: “Clothing and home retained market-leading value perception, and its style credentials continue to improve.
“Sales were up in store and online, supported by growth in Click and Collect sales, active App users and Sparks loyalty membership; demonstrating the emerging power of our omni-channel model.”