**Marks and Spencer Group Plc Reports Strong Fiscal 2024 Performance, Shares Surge by Over 7%**
Shares of Marks and Spencer Group Plc (M&S) rose by more than 7% in early trading on the London Stock Exchange following the company’s announcement of significantly increased profits and sales for the fiscal year 2024. M&S also declared a dividend and expressed confidence in further progress for the coming years.
Stuart Machin, Chief Executive, commented, “Two years into our plan to Reshape for Growth, we are witnessing the emergence of a revitalized M&S. Both our Food and Clothing & Home divisions have outperformed the market in terms of volume and value share, with notable sales growth both in stores and online. However, there is still much work to do, which we view positively, as every challenge represents an opportunity for further growth.”
Looking forward, M&S emphasizes its ongoing focus on driving volume growth in its Food and Clothing & Home sectors as part of the Reshaping M&S strategy. The aim is to achieve the market share and margin goals outlined during the Capital Markets Day.
The company’s positive outlook is underpinned by its solid track record of delivering volume growth, increased market share, and robust free cash flow. Additionally, M&S has raised its cost reduction target to £500 million from the previous £400 million, to be achieved by 2027/28. This adjustment is expected to help maintain target operating margins of over 4% in Food and over 10% in Clothing & Home.
A final dividend of 2 pence per share has been declared, culminating in a full-year dividend of 3 pence. The final dividend is set to be paid on July 5 to shareholders on record as of the close of business on May 31. Notably, the company did not pay a dividend last year.
For fiscal 2024, M&S reported a 41.4% increase in profit before tax, reaching £672.5 million, up from £475.7 million the previous year. Earnings per share rose to 20.8 pence from 17.9 pence. Profit before tax and adjusting items surged by 58% to £716.4 million from £453.3 million. Adjusted earnings per share improved to 23.3 pence, compared to 16.4 pence a year earlier. Adjusted operating profit also saw a year-over-year increase of 33.8%, totaling £838.6 million.
For the 52 weeks ending March 30, Group sales amounted to £13.109 billion, a 9.4% rise from last year's £11.988 billion. This growth was driven by a 13.0% increase in Food sales and a 5.3% increase in Clothing & Home sales. Statutory revenue was reported at £13.040 billion, up 9.3% from £11.931 billion the previous year.
On a like-for-like basis, Food sales grew by 11.3% and Clothing & Home sales increased by 5.2%. Store sales rose by 4.1%, reflecting strong performance in shopping centers and retail parks. Online sales climbed by 7.8%, with a marked acceleration in the second half of the year, particularly in womenswear, attributed to improvements in online marketing effectiveness.
As of the latest update, Marks and Spencer shares were trading at 294.30 pence in London, marking a 7.5% increase.
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