British retailer Marks and Spencer today posted a 43% hike in first-half net profit as shoppers flocked to its newly-refurbished stores selling food and clothes.
Following the strong results, Marks said it would hike its interim dividend by almost a third and carry out a share buyback worth £1 billion.
Net profit grew to £393.3m in the six months to September 29, compared with the first half of 2006, Marks and Spencer said in an earnings statement. Group revenue climbed 6.5% to £4.18 billion.
'While the short term economic outlook remains uncertain, the actions we have taken to reposition and revitalise M&S over the last three years put us in a good position to continue to outperform and give us confidence in the long term growth prospects of the business,' CEO Stuart Rose said.
Marks and Spencer endured falling profits and drastic cutbacks earlier this decade because its long-standing formula of providing reliable middle-of-the-road fashion at mid-range prices had become disconnected from its customer base.
That led three years ago to a takeover bid worth £9.1 billion from British tycoon Philip Green, who promised to shake up the group.
But Marks fended off the approach worth 400 pence a share and put Rose in the hot seat.
Rose said that by Christmas, Marks will have modernised 70% of its UK stores since he became chief executive.
