Retail giant Marks & Spencer hailed strong Christmas trading as it revealed record food sales and its highest clothing and home market share for seven years.
The retail bellwether reported a better-than-expected 6.3 per cent rise in like-for-like sales across its food halls in the 13 weeks to December 31st, with its largest Christmas sales of more than £80 million on December 23rd and its highest share of the market.
It saw clothing and home comparable store sales rise 8.6 per cent, giving it a market share of over 10 per cent – its highest level since 2015.
M&S stuck by its guidance for full-year results in spite of wider economic woes and fears over consumer spending amid the cost-of-living crisis.
“There are clear macro-economic headwinds ahead and underlying cost pressures, but our strong trading performance provides confidence that the results for the year will be consistent with the guidance set out at the group’s interim results in November,” the firm said.
Most analysts pencilled annual underlying profits of between £400-410 million against the £523 million reported in 2021/22.
But the group said it is continuing to focus on its ongoing overhaul and cost savings in the face of soaring inflation.
Stuart Machin, M&S chief executive, said: “M&S sustained trading momentum through the peak quarter and both food and clothing and home have delivered strong growth.”
He added: “Given the inflationary pressures impacting our customers and our business, M&S is taking action to structurally reduce costs and reinforce our customer proposition.”
The group is looking to make savings of about £150 million in 2023/24 to offset soaring inflation and help it weather tougher trading.
M&S recently said it is speeding up a major shake-up of its shops estate, which will result in the closure of 67 larger branches as part of long-term plans to axe 110 stores under a sweeping overhaul led by previous boss Steve Rowe.
Its third quarter and festive update showed strong demand for value ranges as well as more upmarket lines, with its Remarksable Value products now in more than 20 per cent of baskets, while its top tier M&S Collection sales also grew by over 20 per cent.
The group’s resurgent performance in clothing and home continued, albeit at a slower pace, with comparable store sales growth lower than the 13.7 per cent seen in the six months to October 1st.
In the third quarter, it said its clothing arm’s store sales jumped 12.8 per cent as shoppers returned to the high street at Christmas, while online sales edged 0.7 per cent higher as click-and-collect sales orders surged by 20 per cent.
Total UK sales rose 9.7 per cent to £3.3 billion, while international sales grew 12.5 per cent to £312 million in the quarter.
