Marks and Spencer reported the first rise in sales in two years for its clothing division, sending shares higher on Thursday.
Sales in its clothing and home department rose 2.3 percent like-for-like, well above analyst expectations of a 0.5 percent increase. Total sales for the UK rose 1.3 percent on a like-for-like basis, with its food division again proving popular, rising 0.6 percent in the 13 weeks to the 31st December 2016.
Marks and Spencer clothing sales have been in decline for the past five years, and have been the subject of concern for both investors and analysts. The group have been trying to improve sales of its clothing ranges, collaborating with a series of high profile names including international model Rosie Huntingdon-Whiteley to kickstart consumer enthusiasm. The third quarter figures may well be proof that the initiatives are beginning to pay off.
Steve Rowe, Chief Executive of the group, said “better ranges, better availability and better prices helped to improve our performance in a difficult marketplace”, adding that M&S also benefitted from November’s sales: “We also continued to substantially reduce discounting, including over Black Friday.”
“Our Food business continues to grow market share with customers recognising our product as special and different. Our Simply Food store pipeline remains strong”, Rowe said.
The 0.6 percent rise puts them behind supermarket giant Tesco, who on Thursday said food sales rose 1.6 percent in the Christmas period, but above Sainsbury’s, who saw food sales fall slightly.
Rowe continued: “As we look forward, our Q4 reported numbers will be adversely affected by sale timing and a later Easter. Against the background of uncertain consumer confidence the business remains focused on delivering the strategic actions announced last year.”
Shares in Marks and Spencer (LON:MKS) are currently up 1.23 percent, at 344.60 (1027GMT).