Skip to main content

M&S profits and sales beat pre-Covid levels as it fully exits Russia

// Marks & Spencer full-year profits and sales surged, surpassing pre-Covid levels
// M&S’ outgoing boss Steve Rowe, who stands down today, said he was leaving M&S “a fundamentally changed” business.

M&S has delivered a “strong all-round performance” as both profits and sales rose in its last financial year as it decides to fully exit Russia.

Chief executive Steve Rowe, who stands down today, said he was leaving M&S “a fundamentally changed business” as he unveiled that that pre-tax profits before adjusting items hit £522.9million in the year to March 28, up from £403.1million two years ago, before the onset of Covid.

On a statutory level, profits after tax skyrocketed from £27.4million to £309 million.

Sales jumped 6.9% to £10.9billion over the year with both food and clothing revenue growing. Food sales surged 10.1%, or 14.7% excluding its hospitality and franchise business, whilst its clothing and home arm, which has long struggled at M&S, delivered a 3.8% uplift against pre-Covid levels.

Its clothing and home sales were bolstered by a 28.5% growth in full-price sales.

READ MORE: M&S warns Rishi Sunak an online sales tax will ‘damage’ shops and high streets

Meanwhile, M&S has decided to fully exit Russia at a cost of £31million. The retailer had ceased shipments to Russia at the beginning of March.

M&S’s businesses in Russia and Ukraine have been operated by a licence holder and franchise partner, and achieved sales of £102.5million and contributed £5.2million to the bottom line

The retailer said its Ukrainian business has also been partially closed as a result of the war but it was working to reopen it when possible.

M&S chief executive Steve Rowe steps down today with food boss Stuart Machin taking over as chief executive, and Katie Bickerstaffe set to become his co-chief executive.

CFO Eoin Tonge will also take on the role as chief strategy officer as part of the changes.

Rowe said: “When I took over the reins at M&S six years ago, I committed to tackling the underlying issues that had eroded the strength of the business and building the foundations for future growth. 

“For me, what is important about these results is not just the restoration of profit and strong cash flow; it is that they demonstrate that M&S has fundamentally changed. 

“While there is much more to do, the business has moved beyond proving its relevance and has the opportunity for substantial future growth. 

“It has been my privilege to be the steward and shopkeeper of this fantastic business and extraordinary brand at such an important stage in its history. The changes we have delivered are down to the commitment and hard work of colleagues across the business, and I am delighted to hand the baton on to Stuart, Katie and Eoin to lead the next phase.”

Click here to sign up to Retail Gazette‘s free daily email newsletter

The post M&S profits and sales beat pre-Covid levels as it fully exits Russia appeared first on Retail Gazette.



from Retail Gazette https://ift.tt/CnrSQK4
via IFTTT
Labels:

Comments

Post a Comment

Popular posts from this blog

Eagle Labs launches impirica CBD brand

ST. PETERSBURG, Fla. — Eagle Labs has launched impirica, a new brand of CBD intended to eliminate consumer fear, and increase confidence, in trying the exciting new cannabidiol category. Michael Law Although most Americans have now heard about CBD, many are very confused and concerned about product quality. This is inhibiting trial in the category and holding back conversion into sales. In fact, a 2017 study by Johns Hopkins University found that two out of three CBD products on the shelf did not contain the amount of CBD reflected on the label. Furthermore, in 2018 and 2019, the FDA sent notices to a substantial number of CBD manufacturers advising them of serious concerns about product quality or egregious medical claims. The impirica brand looks different than most CBD brands — the brand name itself connotes testing and trust, says Eagle Labs chief commercial officer Michael Law. “It doesn’t use the traditional category colors of browns and greens, and you won’t find a hemp...
70 comments
Read more

Sagar Daryani, CEO and Co-founder – Wow! Momo & Saga: From a Kiosk to a Kingdom

Sagar Daryani’s entrepreneurial odyssey from humble beginnings to pioneering success has redefined the landscape of food startups in India. Co-founding Wow! Momo, he has spearheaded the growth of the largest indigenous QSR chain in the country, crafting a remarkable saga of triumph The Genesis: A Visionary Venture Takes Root In 2008, armed with a mere Rs. 30,000 and boundless ambition, Sagar Daryani and Binod Homagai embarked on their entrepreneurial journey while still pursuing their graduation in B.Com Hons from St. Xavier’s College, Kolkata, even before their college results were out. They knew the value for money and boot-strapped to plough back profits and grow their venture. Sagar spearheaded brand expansion, brand creation, and marketing and retail operations. Grew across the city with a strong consumer focus. The early days were hard but keeping track of the money flow was even harder. Believing in the concept of ‘1 rupee saved is 5 rupees earned’, and the lessons they lear...
1 comment
Read more

Homegrown ice cream chain HOCCO to open 250 stores, eyes Rs 400 crore by FY26

Ankit Chona, Founder and Managing Director of HOCCO, delves into the company’s revenue model, growth strategies, and vision for the future… Bengaluru: HOCCO (House of Chonas Collaborative) , the Ahmedabad-based ice cream and quick-service restaurant (QSR) chain, boasts a rich legacy spanning over 70 years, with roots tracing back to pre-independence India. The Chona family has been deeply entrenched in the food industry since 1944, originally operating in undivided Pakistan. Following the Partition, Satish Chona , an engineer with British Overseas Airways Corporation, relocated from Karachi to India. After journeying through multiple cities, he ultimately settled in Ahmedabad, where he established his first QSR outlet in 1953. Three decades later, he expanded into the casual dining segment, launching a restaurant in Baroda while continuing the family’s ice cream manufacturing business. However, in 2017, the company sold its ice cream division to a South Korean firm, shifting its fo...
Post a Comment
Read more