M&S profit more than doubles, beats estimates on strong sales

Investing.com -- Marks & Spencer Group reported adjusted profit before tax of £403.2 million for the six months ended September 26, more than doubling from £184.1 million in the prior year period and exceeding the analyst consensus of £399 million. Sales rose 16.2% to £9.26 billion, reflecting recovery from last year's cyber incident. Still guessing which stocks will beat the market? Our AI portfolio updates monthly and is outperforming the S&P 500 by 118%. See this month's list » The retailer's Food division posted sales growth of 13.9% with adjusted operating profit of £288.6 million and a margin of 5.6%. Fashion, Home & Beauty sales increased 17.5%, generating adjusted operating profit of £150.5 million with a margin of 7.5%. Food volume growth of 11.9% was driven by reinvestment in value and quality, while Fashion gained market share despite availability constraints and a 5.5% decline in the overall clothing market. Unsure what to buy ahead of earnings? Our AI's recent pre-earnings calls delivered gains of +77% to +118% after results dropped. See this month's earnings picks » International sales climbed 22.1% with adjusted operating profit of £15.3 million, while Ocado Retail sales advanced 20.6% with adjusted operating profit of £25.6 million. M&S Food sales on Ocado Retail increased 22.8%, now comprising 30.9% of the average basket. The company completed 18 store investments during the period, including 13 new or extended stores and five renewals. M&S reported a strong balance sheet with net funds excluding lease liabilities of £374.7 million and cash and short-term investments of £1.07 billion. The interim dividend increased 16.7% to 1.4 pence per share. "The last four years were focused on reshaping M&S. With a stronger balance sheet and higher cash generation, M&S is now reinvesting for growth through a mix of product quality, value, innovation and style, new stores, relocations and renewals, lower-cost supply chain capacity, improved stock flow and modernised technology," the company stated. For the full year, M&S expects Group adjusted profit before tax to be in line with current market expectations, with Food margins anticipated to exceed 2024/25 levels. Original Article M&S profit more than doubles, beats estimates on strong sales Shopify tanks 10% on Q3 GMV miss, in-line revenue Palantir shares retreat despite U.S. commercial sales spike View Comments