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RNS Number : 3201Z
Marks and Spencer Group PLC
11 January 2024
MARKS AND SPENCER GROUP PLC
CHRISTMAS TRADING - 13 WEEKS TO 30 DECEMBER 2023
M&S SUSTAINS STRONG SALES MOMENTUM
Third quarter sales growth, GBPm Total Sales Like-for-Like
constant currency % %
----------------------------- ------ ------------ --------------
Food 2,332 10.5 9.9
Clothing & Home 1,236 4.8 4.8
Total UK 3,568 8.5 8.1
International 288 (6.4)
Group 3,856 7.2
----------------------------- ------ ------------ --------------
Ocado Retail sales are not included in this statement and are
reported separately by Ocado Group plc.
Stuart Machin, Chief Executive said: "Our strategy to reshape
M&S for growth has enabled sustained sales momentum across Food
and Clothing & Home over the Christmas period. Thank you to our
customers for shopping with us and to our colleagues who worked
incredibly hard.
In Food, we led the market on volume growth every month with a
c.7% increase across the quarter, and served more customers than
ever before. Core categories grew strongly and renewal stores,
which cater to larger basket shops, performed particularly well, as
more customers looked to us for more of their full shop.
In Clothing & Home, we delivered a good performance with
sales growing ahead of the market and less stock going into sale.
Womenswear has been the standout, growing volume and value
significantly ahead of the market.
Underpinning the strong performance in both businesses is our
commitment to trusted value - unbeatable M&S quality at the
best possible price. In Food, we inflated below the market, with
quality perception increasing further. In Clothing & Home,
style perception continued to improve and we maintained our lead on
quality and value, delivering an increase in full price sales mix
and our highest full price market share for over a decade.
We enter 2024 with a spring in our step, but clear eyed on the
near-term challenges. We are determined to deliver our objective of
driving 1% growth in market share in both businesses and to up the
pace of our transformation: keeping a relentless focus on trusted
value; accelerating our store rotation and renewal plans; doubling
down on our supply chain programmes to improve availability and
lower costs; and resetting our data, digital and technology
strategy to unlock benefits in future years.
Our vision is to be the most trusted retailer, doing the right
thing for our customers, with quality products at the heart of
everything we do, and we are just at the beginning of what we can
achieve. Lots done, lots to do, lots of opportunity ahead."
Food sales increased 10.5%, with LFL sales up 9.9%. M&S was
the top performing grocer in volume growth terms(1) over the
Christmas period and the quarter, with growth of c.7%, as we served
more customers in the period. Supply chain improvements helped to
drive better availability year-on-year, although there is more to
do. Categories such as meat, poultry, produce, grocery and in-store
bakery delivered strong growth, supported by our programme of
innovation and quality upgrades. 'Remarksable' value sales grew
c.18% as we continue to invest in trusted value.
Clothing & Home sales increased 4.8%, with LFL sales also up
4.8% driven by growth in average selling price, partly a result of
reduced promotions year-on-year. Market share increased(2) , led by
the strong performance of womenswear, supported by improved
customer perceptions of style, quality and value. Store sales
increased 2.0%, with new full line stores performing ahead of plan.
Online sales grew 10.9%, with improved carrier service levels
compared with last year and strong demand for click and collect.
Knitwear, denim, and top of range Autograph lines performed well.
Full price sales mix improved and stock into sale reduced 6%
year-on-year. With a deeper initial cut in line with our objective
of a shorter clearance sale, sell through rates have been
encouraging.
International sales were down 6.4%, largely driven by the
planned timing of franchise shipments in the Middle East and Asia
and more challenging market conditions in India. We are reviewing
our priorities, working with our franchise partners, to improve
performance.
Outlook. As we enter the new year and FY25, expectations for
economic growth remain uncertain, with consumer and geopolitical
risks. We also face additional cost increases from higher than
anticipated wage and business rates related cost inflation.
Nevertheless, the strong Christmas trading performance provides
confidence that the results for the year will be consistent with
market expectations.
Employee share save scheme. We are very pleased that with
improved trading performance and the resultant increase in the
share price, over 9,200 colleagues - the majority being customer
service assistants - are expected to benefit from the vesting of
the 2020 employee share save scheme on 1 February 2024. A colleague
saving a typical GBP150 per month in the scheme will gain over
GBP10,000. To satisfy this, M&S applied to issue 70m new
ordinary shares on 14 December 2023.
For further information, please contact:
Investor Relations: Fraser Ramzan: +44 (0) 7554 227 758; Sandeep
Dasgupta: +44 (0) 7868 735 381
Corporate Press Office : +44 (0)20 8718 1919
1. Kantar FMCG Purchase Panel; Total grocery 4 and 12 weeks ended 24 December 2023
2. Kantar Fashion Clothing & Footwear 12 weeks ended 10 December 2023
- Ends -
Important Notice:
Statements made in this announcement that look forward in time
or that express management's beliefs, expectations or estimates
regarding future occurrences and prospects are "forward-looking
statements" within the meaning of the United States federal
securities laws. These forward-looking statements reflect Marks
& Spencer's current expectations concerning future events and
actual results may differ materially from current expectations or
historical results. Any forward-looking statements are subject to
various risks and uncertainties, including, but not limited to,
failure by Marks & Spencer to predict accurately customer
preferences; decline in the demand for products offered by Marks
& Spencer; competitive influences; changes in levels of store
traffic or consumer spending habits; effectiveness of Marks &
Spencer's brand awareness and marketing programmes; general
economic conditions including, but not limited to, those related to
the Covid-19 pandemic or a downturn in the retail or financial
services industries; acts of war or terrorism worldwide; work
stoppages, slowdowns or strikes; and changes in financial and
equity markets. For further information regarding risks to Marks
& Spencer's business, please consult the risk management
section of the 2023 Annual Report (pages 56-65).
The forward-looking statements contained in this document speak
only as of the date of this announcement, and Marks & Spencer
does not undertake to update any forward-looking statement to
reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events.
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END
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