Home / Knowledge / News / Apparel/Garments / Marks & Spencer business is in good shape
Marks & Spencer business is in good shape
10
Nov '10
Marks & Spencer announced Interim Results of 2010/11.

Half-year results:

• Sales up 5.4% at £4,569.7m: UK +5.6%; International +3.8%
• UK like-for-like sales +4.4%: General Merchandise +6.3%; Food +2.6%
• Adjusted operating profit1 +12.1% to £409.2m (last year £365.0m)
• Adjusted profit before tax1 +16.9% to £348.6m (last year £298.3m)
• Profit before tax £348.6m (last year £306.7m)
• Adjusted basic earnings per share +21.2% to 16.6p1 (last year 13.7p)
• Interim dividend up 12.7% to 6.2p per share (last year 5.5p)
• Net debt £2.2bn (last half year £2.4bn)

Business highlights:

• Increase in Clothing market share of 60bps2 to 11.2% with growth across all areas
• Increase in Food market share of 10bps3 to 3.6%
• Continued improvement in customer price perceptions in Clothing and Food
• 940 new lines launched in Food
• Gross margin up 25 bps
• Direct sales up 49%
• International sales up 3.8% to £462.0m; 20 new stores opened

Update highlights:

• Evolution not revolution – building on success
• By 2013/14:
oDeliver group revenues of between £11.5bn and £12.5bn
o Focus on the UK business to deliver £1.0bn to £1.5bn of new revenues
o Become a leading UK multi-channel retailer with revenues of £800m to £1.0bn
o Target International (excl. Republic of Ireland) revenues of £800m to £1.0bn
• Project 2020 to be accelerated and deliver an additional £50m benefit
• £850m-900m additional capital investment over the next three years with target IRR of 12-15%
• Maintain a progressive dividend policy with broadly two times cover

Commenting on the Half Year Results, Marc Bolland, Chief Executive, said: "Marks & Spencer has had a strong first half. Profit before tax was up 17%, earnings per share up 21%, and the Board has approved a half year dividend of 6.2p per share, an increase of 12.7%. "In Clothing, we grew market share in all areas as we gave our customers better fashions, more choice and great value. In Food, more customers chose to shop with us recognising our quality, innovation, and improved values.

Commenting on the update, Marc said:“The business is in good shape and we have strong foundations on which to build through evolution not revolution.

“We will begin by focusing on the core UK business. For our customers this means that in Clothing we will improve our core M&S ranges, so that the unique quality, style and fashion of the M&S brand stand out. We will also clarify the position of our sub-brands, moving them from labels to real brands.

“In Food, we will establish a clear market position as a specialist high-quality retailer, inspiring customers with our unrivalled quality and innovation. Our focus will be on fresh, speciality and convenience, bringing the Best of British and Flavours of the World to our customers.

“Over the first three years we will also build our multi-channel and international capability. This will develop M&S into an international multi-channel retailer, making the M&S brand more accessible to more customers around the world.”

Click here for more details

Marks & Spencer Plc

Must ReadView All

Textiles | On 26th May 2017

Lenzing unleashes new eco-friendly fibre

There's a new eco-friendly fibre on the anvil—Austrian speciality...

Apparel/Garments | On 26th May 2017

Benetton seeks approval for FDI in single-brand retail

Global fashion brand Benetton Group, has sought Indian government's...

Apparel/Garments | On 26th May 2017

Walmart to conduct GST workshops for SME suppliers

With the objective of supporting its small and medium-sized (SME)...

Interviews View All

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search