Marks and Spencer Group reports that its Clothing & Home sales increased +4.8% over the Christmas period (the 13 weeks to 30th December 2023), with LFL sales also up +4.8%, driven by growth in average selling price – partly a result of reduced promotions YoY.
Market share increased, led by the strong performance of womenswear, supported by improved customer perceptions of style, quality and value. Store sales increased +2.0%, with new full-line stores performing ahead of plan. Online sales grew +10.9%, with improved carrier service levels compared with last year and strong demand for click and collect.
Full-price sales mix improved, and stock into sale reduced -6% YoY. "With a deeper initial cut in line with our objective of a shorter clearance sale, sell-through rates have been encouraging," states the retailer.
International sales were down -6.4%, largely driven by the planned timing of franchise shipments in the Middle East and Asia and more challenging market conditions in India.
Chief executive Stuart Machin comments: “Our strategy to reshape M&S for growth has enabled sustained sales momentum across Food and Clothing & Home over the Christmas period.
"In Clothing & Home, we delivered a good performance with sales growing ahead of the market and less stock going into sale.
"Underpinning the strong performance in both businesses is our commitment to trusted value – unbeatable M&S quality at the best possible price. In Clothing & Home, style perception continued to improve and we maintained our lead on quality and value, delivering an increase in full-price sales mix and our highest full-price market share for over a decade.
"We enter 2024 with a spring in our step, but clear eyed on the near-term challenges. We are determined to deliver our objective of driving +1% growth in market share in both businesses and to up the pace of our transformation: keeping a relentless focus on trusted value; accelerating our store rotation and renewal plans; doubling down on our supply chain programmes to improve availability and lower costs; and resetting our data, digital and technology strategy to unlock benefits in future years.
"Our vision is to be the most trusted retailer, doing the right thing for our customers, with quality products at the heart of everything we do, and we are just at the beginning of what we can achieve. Lots done, lots to do, lots of opportunity ahead.”
The group concludes: "As we enter the new year and FY25, expectations for economic growth remain uncertain, with consumer and geopolitical risks. We also face additional cost increases from higher-than-anticipated wage- and business rates-related cost inflation. Nevertheless, the strong Christmas trading performance provides confidence that the results for the year will be consistent with market expectations."
