Marks & Spencer plc has posted its strongest quarterly sales growth in three years.
The U.K.’s biggest department store operator also said Tuesday that pretax profits for the fiscal year ending April 1 could rise as much as 22.1 percent compared with last year.
In the 13 weeks ending April 1, overall sales rose 9.1 percent, clothing was up 8.5 percent and home increased 24 percent versus the year-ago period.
Same-store sales increased 6.8 percent.
However, Stuart Rose, chief executive of M&S, who joined the company in May 2004 as it sought to defeat a takeover bid by entrepreneur Philip Green, was cautious.
“We are pleased with the progress we are making, but there remains much to do,” Rose said in a statement. “The trading environment remains difficult and we do not expect this to improve in the next financial year.”
The company said in a fourth-quarter trading statement that pretax profits for the fiscal year would fall between 745 million pounds, or $1.28 billion, and 755 million pounds, or $1.31 billion. Last year, they were 618.5 million pounds, or $1.08 billion. All figures are at current exchange rates.
M&S said in the statement the quarterly performance was a result of “better buying, better value and better styling.” Rose has sought to modernize stores, launch new lines and negotiate better deals with suppliers to reduce prices.
Full preliminary financial results for the fiscal year will be released May 23.
For complete coverage, see tomorrow’s WWD.