M&S Set to Reveal Another Rise in Sales Despite Pressure on Shopper Budgets
Key Highlights :
It's been a year since Steve Rowe left his post as CEO of the historic retailer Marks & Spencer, and the company is set to reveal another rise in sales when it updates the market on May 24. Despite pressure on shopper budgets due to soaring household bills, such as for energy, analysts are expecting a 7.7% growth in the company's food division and a 10.5% rise in its clothing and home sales.
Investors in the company will be hoping for further progress in the clothing operation, which had become a problem area for the company before the transformation plan was launched. Analysts have praised the recent programme of store refurbishments, saying it is the best they have seen. The company has also said it will invest around £500 million into its stores, creating 3,400 jobs in the process.
M&S is also making progress in the premium grocery space, with its food hall business continuing to outperform Waitrose, the supermarket arm of rival John Lewis. Pre-tax profits are expected to nudge higher for the past year, with a consensus of experts predicting a £436 million pre-tax profit for the year, up from £391.7 million.
The company is looking to rebuild its margins in the face of cost-pressures and inflationary headwinds. It is hoped that the tie-up with logistics provider Gist will help the company gain more control over its supply chain.
M&S has been one of the few success stories on the high street in recent years, and investors will be hoping that its current bosses can point towards a continued upward trajectory in trading. The company's shares have been robust in recent months, and the success of the turnaround plan will be a major factor in determining the company's future prospects.
