British retailer M&S' first half revenue surpasses pre-pandemic levels

18 Nov '21

2 min read

Pic: Marks & Spencer

Marks & Spencer (M&S), a UK-based multinational retailer, has posted an increase in statutory revenue to £5.1 billion during the first half (H1) of FY22 ended on October 2, 2021, compared to the revenue of £4.0 billion in the same period last fiscal and £4.8 billion in H1 FY20. The clothing and home segment’s profitability improved with a marginal 1 per cent decline in sales over pre-pandemic period despite lockdown being extending into week one of the period.

“Given the history of M&S we’ve been clear that we won’t overclaim our progress. Unpacking the numbers isn’t a linear exercise and we’ve called out the COVID bounce back tailwinds, as well as the headwinds from the pandemic, supply chain and Brexit, some of which will continue into next year,” Steve Rowe, chief executive at M&S, said in a press release.

Operating profit before adjusting items during the six-month period rose sharply to £363.2 million (£61.8 million). Profit after tax for the British household company improved to £159.9 million (loss: £71.6 million).

“There are early indicators of renewed competitiveness in most categories of clothing and home business, with increased market share overall and in both the online and store channels and improving style and value perception. The number of online customers continued to grow, and we have seen stronger retention levels of newer shoppers supported by the Sparks data and personalisation programme,” M&S said in a statement.

Furthermore, the retailer’s trading for the first four weeks of H2 has been consistent with growth rates reported in Q2 and ahead of plan and M&S anticipates the strong demand and improved customer perception to be sustained in the near term. Also, assuming no further acute pandemic related disruptions, the company in its outlook said that it expects profit before tax to be ahead of expectations and reach around £500 million.

Fibre2Fashion News Desk (JL)

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