Marks & Spencer’s clothing and home division has reported a 5.3% increase in sales year-on-year, with adjusted operating profit rising by 21% from £323.8 million in 2022/23 to £402.8 million in the 52 weeks ending 30 March 2024.
Profits at M&S have remained robust, currently sitting at £716.4 million before tax and adjusting items, marking a 58% increase from £453.3 million in 2022/23.
In its full-year results published today (22 May), the company reported that statutory profit before tax was £672.5 million, up from £475.7 million the previous year.
Operating profit before adjusting items increased by 33% from £626.6 million in April 2023 to £838.6 million.
As its market share for clothing increased to 10.0% (from 9.6%), the retailer revealed that buying “bolder and deeper” and expanding its clothing lines with over £1 million in sales (a 50% increase) over two years, alongside its full-price sales mix increasing from 63% to 81% since 2019/20, were key contributing factors to the department’s growth.
Sales in “heartland categories” of women’s and menswear outperformed, particularly core products such as denim and casual bottoms, knitwear, and bras. Meanwhile, men’s Autograph sales were up over 50%, and holiday clothing sales grew by 15%. Store sales, particularly shopping center and retail park stores, increased by 4.1%.
M&S opened six full-line stores (which sell clothing, home, and food), five of which were former Debenhams units, in Leeds, Manchester, Liverpool, Birmingham, and Thurrock, alongside a new store in Purley Way.
However, it closed 12 stores, five of which were relocations, and replacement stores “outperformed” closed stores as sales grew by 50% from a “similar space”.
The company aims to open four new full stores in 2024/25.
The report added that M&S.com’s share of clothing and home sales has increased from 22% five years ago, but “profitability is not yet market-leading”.
As a result, it plans to develop the online and M&S app experience with the aim to grow towards a 50% share. CEO Stuart Machin said: “Food and clothing and home grew volume and value share ahead of the market, and sales increased across stores and online. Both businesses have now delivered 12 consecutive quarters of sales growth, and this trading momentum gives us wind in our sails, and confidence that our plan is working. We are becoming more relevant, to more people, more of the time.
“Investment in store rotation and the end-to-end supply chain is beginning to pay off. New stores and renewals are performing ahead of forecast and attracting new customers. Supply chain modernization supported margin growth across both businesses. In clothing and home, stock flow improved, enabling historically low levels of stock cover.”
