Underpressure retailer enjoyed clothing and home sales growth of 3.1%
Companies: Marks and Spencer Group plc
Marks and Spencer (LON: MKS) jumped 3% as the market opened on Thursday after it reported that it beat its Christmas forecasts and saw clothing sales growth for the first time in 2 years.
Sales in the firm's Clothing & Home division rose 3.1%, half of which was due to the shift in reporting period, leading to five days being included in the December sale. LFL sales in the division rose 2.3%, with "substantially" reduced items on sale over Black Friday.
"Stock into sale during the quarter declined by c.7% with one fewer clearance event than last year. As a result of these actions, we saw a further improvement in full price sales."
Food sales jumped 5.6%, up 0.6% on a LFL basis. Whilst international sales were up 2.9% on a constant currency basis "benefiting from earlier shipments of spring ranges to our franchise partners."
CEO Steve Rowe said he was pleased with the results, but warned Q4 numbers will be adversely affected by a later Easter and uncertain consumer confidence:
"In Clothing & Home, better ranges, better availability and better prices helped to improve our performance in a difficult marketplace. We also continued to substantially reduce discounting, including over Black Friday.
Our Food business continues to grow market share with customers recognising our product as special and different. Our Simply Food store pipeline remains strong.
As we look forward, our Q4 reported numbers will be adversely affected by sale timing and a later Easter. Against the background of uncertain consumer confidence the business remains focused on delivering the strategic actions announced last year."
The company says it expects full-year performance to be in-line with expectations.
