In the last quarter, M&S emerged as Britain’s fastest growing grocer alongside Lidl and the retail arm of Ocado, in which it holds a 50% stake.
Investing to create the perception of value through the Remarksable line has helped keep its appeal and allowed sales growth amid cost-of-living pressures.
That’s meant despite the challenging retail environment, marked by wage inflation and business rates, M&S exceeded analyst expectations with full-year revenue growth of 9.3%, and operating profit growth of 33.8%.
Despite promising in-house progress, there are concerns regarding Ocado, however. Losses from M&S’s share in Ocado Retail have widened, and its public spat has drawn media attention, suggesting potential strain in the partnership.
Lawson-Johns concluded: “Operational and strategic improvements mean the business is healthier than it has been in some time. Enhanced cash generation and a robust balance sheet have enabled a continued reduction in net debt.”
“This financial stability has allowed M&S to restore its full-year dividend to 3p per share. While the prospective yield of 2.3% may seem modest, the anticipated increase in dividends could appeal to income-focused investors.”
