Shares of UK-based Marks and Spencer PLC (GB:MKS) soared over 5% as of writing after its H1 pre-tax profit of £392 million exceeded the market forecast of £327 million and marked a year-over-year growth of 20.4%.
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Marks and Spencer is a British retailer that offers a diverse range of products, including clothing, food, and household goods.
Marks and Spencer Reports Sales Growth
In the first half, Marks and Spencer reported a growth of 5.7% in its statutory revenue, reaching £6.48 billion. Within its segments, Food sales rose 8.1%, as the company enhanced its food infrastructure to improve availability and lower costs. Meanwhile, Clothing and Home sales increased 4.7%, fueled by the performance of the womenswear category.
Additionally, the company’s board declared an interim dividend of 1p per share, consistent with last year.
Looking ahead, Marks and Spencer remains confident about achieving continued growth for the rest of the year. The company reported that its performance in the first five weeks of the second half is progressing as planned. However, it noted that the high-cost inflation and uncertain consumer conditions experienced in the first half are likely to continue.
Speaking of costs, the company is on track with its reduction target. It saved around £60 million during the period, largely offsetting cost inflation.
Are Marks and Spencer Shares a Good Buy?
According to TipRanks, MKS stock has received a Strong Buy consensus rating based on unanimous Buy recommendations from nine analysts. The average MKS share price forecast is 420.88p, which is 3.13% higher than the current trading level.
Year-to-date, MKS stock has gained 45.4%.
