UK’s M&S reports 14% growth in first-half apparel and home sales

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Major British multinational retailer Marks & Spencer (M&S) reported a 14% increase in total clothing and home sales in the first half (H1) of the 2022-2023 (FY23) financial year, ending October 1, 2022. The enterprise apparel and residential segment market share increased 50 basis points (bps) to 9.1%, and growth was seen across all categories and channels in the segment.

The company’s UK clothing and home sales were £1,749.7 million in the first half of the 2022-23 financial year, compared with £1,534.6 million in the first half of the 2021-2022 fiscal year.

Major British multinational retailer Marks & Spencer reported a 14% increase in total clothing and home sales in the first half of the 2022-2023 financial year, ending October 1, 2022. The market share of the segment of The company’s apparel and home rose 50 basis points to 9.1 percent, and growth was seen across all categories and channels in the segment.

For the first half of the 2022-2023 financial year, M&S’s UK clothing and home segment recorded robust growth with like-for-like (LFL) sales up 13.7% from last year. fiscal year 2021-2022. Participation in full-price sales was broadly at the same level as last year and well above the historical average.

Store sales for the first half of fiscal 2022-23 increased by 18.8% compared to fiscal 2021-22. Growth was led by city center and mall stores, reflecting a return to more normal shopping patterns, although high streets continued to lag. Online sales grew 4.9% and accounted for 32% of total apparel and home sales, with continued strong traffic growth and an increase in average order value, partially offset by higher return rates .

In total, the apparel and home business generated operating profit before adjusting items of £171.4m, compared to £156.2m in 2021-22, the result of last year benefiting from £27.8 million in UK corporate rate relief. Strong net margins of 9.8% in the first half reflect the rebound in store sales, a stable price mix and operating leverage from sales growth.

The form of purchase has been improved, removing duplication and deepening core product programs while also investing in emerging growth categories such as children’s apparel and brands, the company said in a statement. Press.

Womenswear increased sales by 15% in the period despite 5% fewer options, and the overall business had 276 lines achieving sales above £1million in the first half. Sales of these lines increased by 25% compared to 2021-2022.

Womenswear generated particularly strong growth in dresses, which rose more than 50 percent, and “holiday boutique” also grew strongly.

Dress shirts and men’s dress clothes also more than halved, reflecting better availability and customer attention to key occasions such as weddings, while casual sales also increased.

The company has taken initial steps to unlock supply chain cost opportunities. Today, the apparel and home supply chain has an end-to-end service cost of approximately 15%, providing a substantial opportunity for efficiency by transforming the flow of inventory from source at the shelf and in rapid replenishment to the shelf for returns.

In addition, growth was driven by apparel and home sales in key markets including India, where revenue doubled following the effects of COVID lockdowns on the business last year.

M&S Group pre-tax profit was £205.5m in the first half of the 2022-23 financial year, compared to £269.4m in the first half of the 2021-22 financial year, while revenue The company’s statutory costs were £5,538.2 million, compared to £5,105 million for the same period.

M&S expects a smooth stream of business as it enters what is traditionally its best quarter. In the second first four weeks of the second half, the company’s apparel and home sales increased 4.2% and international sales increased 4.1%. Overall, M&S expects to deliver adjusted pre-tax profit in FY23 for its core businesses, including Gist.

The company believes it is highly likely that conditions will become more challenging in fiscal 2024. However, the sweeping changes made over the past few years, along with an invigorated product offering and excellent value for money , provide some isolation from the congregation. storm. In addition, the M&S clientele has a slightly advantaged demographic.

Under new management, steps are now being taken to accelerate the migration to growth channels – online stores and modern high performance stores – while proposing plans to streamline the business and reduce costs. The combination of technology-driven efficiencies, structural cost reduction, efficiencies and supply chain simplification aims to deliver over £150m in savings in 2023-24 .

Fibre2Fashion (DP) Press Office

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