Among the key news on UK stocks, Marks and Spencer PLC (GB:MKS) shares gained over 8% as of writing today after the retailer released upbeat numbers in its annual results for 2023/24 and restored its dividends. For the year ended on March 30, 2024, the company delivered a 58% growth in its pre-tax profit of £716.4 million as compared to the previous fiscal year. The metric also surpassed analysts’ forecasted range of £665 million to £705 million.
Backed by solid results, the company proposed a final dividend of 2p per share, resulting in a full-year dividend of 3p for 2023/24. This marks the company’s first annual dividend after 2019.
Marks & Spencer is a British retailer that offers a diverse range of products, including clothing, food, and household goods.
Marks & Spencer‘s Turnaround Fuels Strong Results
Marks & Spencer’s strong performance amid a difficult retail trading environment reflects the effectiveness of its CEO Stuart Machin’s turnaround plan. As part of the turnaround strategy, M&S revamped its stores and closed the unprofitable ones. Additionally, the company introduced more fashionable and high-quality clothing, enhanced its technology and e-commerce operations, and improved the supply chain.
The company’s total revenue increased by 9.4% to £13.1 billion, with Food sales rising by 13% and Clothing and Home sales growing by 5.3%. Additionally, the company met its margin targets during the year, delivering 4.8% in Food and 10.3% in Clothing and Home.
Looking ahead, M&S aims to increase its market share by 1% in both the Clothing & Home and Food divisions over the next five years. It is also targeting an adjusted operating margin of over 10% in Clothing & Home and over 4% in Food by 2027/28.
Is M&S a Good Stock to Buy?
According to TipRanks consensus, MKS stock has received a Strong Buy rating based on Buy recommendations from all the six analysts covering it. The average MKS share price forecast is 320.83p, which is 7.8% higher than the current trading level.
