Marks & Spencer has today reported a better-than-expected 8.1% rise in like-for-like sales over the Christmas trading period, driven by market-leading growth in food and a strong performance in womenswear.
Like-for-like food sales rose 9.9% in the 13 weeks to December 30, ahead of the most optimistic analyst forecasts, while clothing and home growth of 4.8% also soundly beat market expectations of a 2.8% rise.
The group said in food it outperformed the rest of Britain's grocery market, with 7% volume growth, while its clothing and home categories also grew ahead of the market.
Chief executive Stuart Machin said M&S had "sustained sales momentum" across food and clothing and home over the Christmas period.
"We enter 2024 with a spring in our step, but clear eyed on the near-term challenges," he said.
The 140-year old group, whose quality food offer is a favourite with festive shoppers, said it faced additional cost increases from higher-than-anticipated wage and business rates related cost inflation.
But it said its strong Christmas trading performance provided confidence it would meet forecasts for the year.
Analysts currently expect pretax profit for the full year before adjusting items to come in at £663m, up from £482m in 2022/23.
Marks & Spencer said today that its Irish customers were drawn to its food offering, including products from its growing range of Irish producers that included fresh Irish turkeys from Grove Farm in Co Monaghan, Irish Spiced Beef from Co Tipperary and Lir Chocolates from Co Meath.
M&S Ireland said it continues to increase its local supply base and support Irish producers.
It also supported local employment here, hiring 400 people for the Christmas season, with some staying on with permanent contracts.
Meanwhile, the M&S CEO said the retailer is expecting some slight delay in clothing and home deliveries from disruption to shipping in the Red Sea.
"We're expecting maybe some slight delay," chief executive Stuart Machin told reporters today, adding that February and March would be affected.
