M&S set for sales increase despite price pressures

HENRY SAKER-CLARK

MARKS & Spencer (M&S) is set to reveal another rise in sales despite wider concerns over the effect of the soaring cost of living on the high street.

The retailer’s shares have been robust in recent months as it continued to make progress following the turnaround plan launched by previous chief executive officer Steve Rowe. Investors will hope it can point towards a continued upward trajectory in trading when its current bosses update the market on Wednesday.

M&S is expected to reveal another jump in sales for the year to April, with 7.7 per cent growth projected in its food division and a 10.5 per cent rise predicted for clothing and home sales. It comes despite pressure on shopper budgets, as household bills including energy have shot up in cost, causing some Brits to reassess non-essential spending.

However, in its previous trading update in January, M&S said both its food hall business and clothing and home division saw significant sales increases over the previous quarter.

Shareholders will be particularly keen to see further progress in the clothing operation, which had become a problem area for the company.

Peel Hunt analyst Jonathan Pritchard said the group has benefitted from a continued shake-up of its store portfolio, describing the recent programme of refurbishments as “the best we have seen”.

The retailer said earlier this year it would invest around £500m into its stores, in a move set to create a further 3,400 jobs.

Pretax profits are also expected to nudge higher for the past year, up to £436m from £391.7m.

Stuart Machin became CEO in May 2022