LONDON, Jan 12 (Reuters) – British retailer Marks & Spencer (MKS.L) reported sturdy Christmas gross sales, with demand for turkeys serving to to ship its largest share of the meals and partywear market boosting its clothes gross sales.
Chief Government Stuart Machin stated M&S outperformed the meals market on each quantity and worth within the four-week Christmas interval for the second yr in a row, whereas sustaining the lead within the attire and residential market with its highest share in seven years.
“This efficiency in our two companies gives confidence in delivering our full-year outcomes,” he stated Thursday.
The retailer’s high-end meals choices historically entice consumers at Christmas, and 2022 was no exception regardless of mounting financial stress on shoppers.
It benefited from higher availability of seasonal strains, together with turkeys, the place it stated it retained its main market share for the third yr in a row.
Nevertheless, he stated his “Outstanding Worth” providing additionally carried out strongly. As a complete, he reported a better-than-expected improve in comparable meals gross sales of 6.three%.
Clothes and residential gross sales elevated by eight.6%.
The retailer’s sturdy efficiency provides to proof that consumers had been decided to spend at Christmas regardless of inflation sitting at 10.7% and shopper confidence close to report lows.
Tesco(TSCO.L), Britain’s largest retailer, additionally reported stronger-than-expected Christmas gross sales on Thursday, with comparable gross sales rising 7.2% within the six weeks to January 7.
M&S Worldwide gross sales elevated 12.5% at fixed trade charges, with sturdy efficiency in key franchise markets within the Center East and residential markets, together with India, within the 13 weeks to December 31.
Nevertheless, he remained cautious concerning the broader financial setting, saying there have been “clear macroeconomic headwinds forward and underlying value pressures” however was assured his full-year outcomes would meet his steerage.
He has already forecast income to fall within the 2022-23 yr, having warned in November of a “coming storm” of upper prices and stress on family budgets.
Reporting by Paul Sandle; Edited by Kate Holton
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