Business

M&S sees sales rise over bumper Christmas period

Growth driven by food and womenswear

Retailer Marks & Spencer put in a strong performance at Christmas. Photograph: Chris Ratcliffe/Bloomberg

Thu Jan 11 2024 - 08:44

Retailer Marks & Spencer said like-for-like sales rose more than 8 per cent over the Christmas trading period, driven by growth in food and a strong performance in womenswear.

Like-for-like food sales at its UK stores rose 9.9 per cent in the 13 weeks to December 30th, ahead of the most optimistic analyst forecasts, while clothing and home growth of 4.8 per cent also soundly beat market expectations of a 2.8 per cent rise.

Overall, sales grew 7.2 per cent, with international sales down 6.4 per cent.

In Ireland, where the company employs 1,900 staff across its store network and support centre, M&S increased the range of Irish producers in its food business, including fresh turkeys from Grove Farm and Lir Chocolates, with plans to continue increasing its local supply base.

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Chief executive Stuart Machin said M&S had “sustained sales momentum” across food and clothing and home over the Christmas period.

“We enter 2024 with a spring in our step, but clear-eyed on the near-term challenges,” he said.

The 140-year old group, whose quality food offer is a favourite with festive shoppers, said it faced additional cost increases from higher-than-anticipated wage and business rates related cost inflation.

But it said its strong Christmas trading performance provided confidence it would meet forecasts for the year.

Analysts currently expect pretax profit for the full year before adjusting items to come in at £663 million (€770 million), up from £482 million. - Additional reporting: Reuters

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