REG - Marks and Spencer Gp - Trading Update and Outlook for the Year

Marks and SpencerAnnouncement

15/08/2023 07:00

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RNS Number : 2899J  Marks and Spencer Group PLC  15 August 2023

 

 

Marks and Spencer Group plc

MARKS AND SPENCER UPDATES ON STRONG TRADING AND OUTLOOK FOR THE YEAR

The first 19 weeks of the year(1) has seen continued market share growth in
both the Clothing & Home and Food businesses, and good progress on the
programme to reshape M&S.

·      Like-for-like Food(2) sales grew over 11%. We made further
investment in quality and trusted value, sharpening prices on over 80
'Remarksable Value' lines.

 

·      Like-for-like Clothing & Home sales grew over 6%, with strong
growth in stores, and more subdued growth in online. Sell through rates have
been robust and stock into sale was lower than planned.

Overall, group operating margin has continued to be robust, driven by strong
store performance and enhanced by our 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.
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.

Interim results, for the 26 weeks ending 30 September will be reported on 8
November 2023.

 

For further information, please contact:

Investor Relations:

Fraser Ramzan: +44 (0) 7554 227 758

Sandeep Dasgupta: +44 (0) 7868 735 381

Media enquiries:

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

1.     Trading for the 19 weeks ended 12 August 2023.

2.     Food sales growth does not include the impact of 3rd party sales by
Gist Limited. In addition, Ocado Retail sales are not included and are
reported separately by Ocado Group plc.

 

-End-

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, those related to the Covid-19
pandemic or 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 2023 Annual Report (pages 56-65).

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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