REG - Marks and Spencer Gp - Christmas Trading Results

Marks and SpencerAnnouncement

09/01/2025 07:00

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RNS Number : 6615S  Marks and Spencer Group PLC  09 January 2025

MARKS AND SPENCER GROUP PLC

CHRISTMAS TRADING - 13 WEEKS TO 28 DECEMBER 2024

"RESHAPING FOR GROWTH DELIVERS ANOTHER GOOD CHRISTMAS"

 Third quarter sales growth   £m     Total Sales %  Like-for-Like (LFL) %
 Food                         2,581  8.7            8.9
 Clothing, Home & Beauty      1,305  1.0            1.9
 Total UK and ROI             3,886  5.9            6.4
 International                178    (2.8)          n/a
 Group                        4,064  5.6            n/a

Food and Clothing, Home & Beauty at reported sales. International and
Group sales at constant currency.

Ocado Retail Sales are not included in this statement and are reported
separately by Ocado Group.

Stuart Machin, Chief Executive said: "This was another good Christmas for
M&S, building on a strong performance in the prior year. We sustained
trading momentum with like-for-like sales up 8.9% for Food and 1.9% for
Clothing, Home & Beauty. Sales records were broken across the business,
with Food recording its biggest day and Clothing, Home & Beauty online its
biggest week, but we're not complacent - as a growth business it's our job to
break records.

In Food, our focus on quality, innovation and trusted value translated into
strong sales and market share growth, with M&S the top performing
store-based grocery retailer over the period. 500 new lines were launched, and
sales of new Christmas products grew 14%. Core category sales grew strongly as
more customers ticked off their whole shopping list at M&S. There were a
few growing pains as we delivered our biggest ever volumes, particularly in
smaller stores, reaffirming the opportunity to accelerate transformation of
the Food supply chain and go even faster on store renewal and rotation.

In Clothing, Home & Beauty our focus on style, quality and value saw us
grow sales and take market share in a declining market, with womenswear and
menswear performing well. M&S partywear sales were up on last year but it
was our heartland categories of denim and knitwear that outperformed. Although
Home & Beauty grew, the development of these categories is nascent, and
they remain areas of opportunity. Online grew strongly and new and renewed
stores continued to outperform expectations, but store sales overall were down
1.5% in part due to weather. The opportunity for Clothing, Home & Beauty
in 2025 is to continue offering customers the best style, quality and value,
but marry that with a focus on turning stock faster, further reducing options
and optimising store range and space. As in Food, these opportunities simply
make us more resolute to go faster on our plans to modernise the supply chain
and utilise digital and technology to maximise our online potential.

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.

Transforming M&S is a marathon, not a sprint, and we go into 2025 shifting
up a gear and raring to go as we accelerate the scale and pace of change.

Thank you to all of our customers for shopping with M&S this Christmas
and to all of our colleagues for their extraordinary effort delivering
M&S's busiest ever peak."

 

__________________________________________

 

Food sales increased 8.7%, with LFL sales up 8.9%. M&S sustained UK volume
growth of 6.6% from the first half into the Christmas trading period driven by
increased customers and transactions, and was the top performing store-based
grocery retailer in volume and value over the period(1). New and renewal
stores exceeded expectations. Initial supply chain investment supported
improved availability, but increased volumes and associated stock flow
challenges led to slightly higher seasonal markdown as we reset for the new
year.

Sales growth continued to be driven by investment in quality and value, and
500 new lines in the period. Core categories, such as meat, produce, grocery
and in-store bakery grew double-digits as customers chose M&S for more of
their everyday shopping. There was a strong performance from innovation and
quality upgrades in areas such as Gastropub, as customers chose M&S as an
affordable restaurant quality alternative to eating out. 'Remarksable' sales
also grew 14% as we continue to invest in trusted value.

Clothing, Home & Beauty sales increased 1.0%, with LFL sales up 1.9%,
ahead of the market(2) in challenging conditions. Underlying sales grew 2.6%
adjusted for the impact of the exit of the bulky furniture category. Within
this, online sales were up 11.7% driven by customer growth and improved
availability and represented 34% of sales in the period vs 31% last year.
There remains work to do to right size the store estate and invest in online
growth, but new and renewal stores continued to outperform expectations. While
stock into Sale was broadly in line with last year, we have an opportunity to
reduce option count and drive full price sell through.

International sales were down 2.8%, largely driven by continued challenging
market conditions in India and the phasing of franchise shipments. Reset
actions are underway and we remain confident in the growth opportunity over
the medium term.

Outlook. As we enter the new year, the outlook for economic growth, inflation
and interest rates is uncertain and the business faces higher costs from
well-documented increases in taxation. However there remain substantial
opportunities and we are focused on what is within our control, as we reshape
M&S for growth. Therefore, as indicated at the half year results in
November, we are confident of making further progress in the remainder of the
year.

For further information, please contact:

Investor Relations: Fraser Ramzan: +44 (0)7554 227 758; Helen Lee: +44 (0)7880
294 990

Corporate Press Office: +44 (0)20 8718 1919

 

1.  Kantar FMCG Purchase Panel: Total grocery 12 weeks ended 29th December
2024

2.  Kantar Fashion Clothing & Footwear 12 weeks ended 8th December 2024

 

Important Notice: The information contained within this announcement is deemed
by the Company to constitute inside information as stipulated under the UK
version of the Market Abuse Regulation (EU) No. 596/2014 as it forms part of
UK law by virtue of the European Union (Withdrawal) Act 2018. Upon the
publication of this announcement, this inside information is now considered to
be in the public domain.

Statements made in this announcement that look forward in time or that express
management's beliefs, expectations or estimates regarding future occurrences
and prospects are "forward-looking statements" within the meaning of the
United States federal securities laws. These forward-looking statements
reflect Marks & Spencer's current expectations concerning future events
and actual results may differ materially from current expectations or
historical results. Any forward-looking statements are subject to various
risks and uncertainties, including, but not limited to, failure by Marks &
Spencer to predict accurately customer preferences; decline in the demand for
products offered by Marks & Spencer; competitive influences; changes in
levels of store traffic or consumer spending habits; effectiveness of Marks
& Spencer's brand awareness and marketing programmes; general economic
conditions including, but not limited to, a downturn in the retail or
financial services industries; acts of war or terrorism worldwide; work
stoppages, slowdowns or strikes; and changes in financial and equity markets.
For further information regarding risks to Marks & Spencer's business,
please consult the risk management section of the 2024 Annual Report (pages
62-70).

 

The forward-looking statements contained in this document speak only as of the
date of this announcement, and Marks & Spencer does not undertake to
update any forward-looking statement to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated events.

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