M&S sees signs turnaround is starting to work
STORY: Marks & Spencer sees signs that a turnaround plan is starting to work.
The UK retailer on Wednesday (May 24) forecast modest revenue growth, and said it would start paying dividends again.
After years of failed recovery bids, it’s focusing on improving the quality of its food and clothing, and investing in technology and e-commerce.
The firm has also embarked on a radical overhaul of its store network.
However, the company warned that the outlook for consumer spending remained very uncertain.
Cost inflation is also biting.
Even so, investors liked what they heard.
M&S shares surged over 12% in early trades Wednesday.
They’re now up by a half this year, but still far from the levels seen back in early 2022.
Over the year to the start of April, M&S made a profit of £482 million - or just under $600 million.
That was down on last year, but beat analyst forecasts.
M&S cited factors including higher energy and labor costs.
It also faced costs over its exit from the Russian market.