Marks & Spencer on Friday revised up its profit outlook after a surge in demand for food and an increase in online clothes’ orders provided indication that the British retailer’s latest turnaround plan was beginning to pay off.
Thanks to efforts aimed to improve the quality of products and solid investment initiatives in technology and e-commerce, Marks & Spencer’s clothing and home division revenue increased almost twofold during the 19 weeks to August 14th compared to the same period a year ago. Revenue at the unit was just 2.6% lower compared to pre-pandemic 2019.
Food revenue surged 10.8% compared to last year and 9.6% compared to the year before, as cost-cutting initiatives aided the company to offset inflation and supply chain disruptions from labor shortages.
“Assuming no further COVID-related restrictions on trading, at this early stage we expect adjusted profit before tax for the year to be above the upper end of previous guidance of 300-350 million pounds ($409-$477 million),” Marks & Spencer said in a statement, cited by Reuters.