M&S raises profit guidance

M&S has warned of supply chain issues despite raising its profits outlook.

Strong results came off the back of a 10% rise in its food division and improved sales in clothing and homeware.

Pre-tax profits £187m for the half-year. For the same period in 2020, the group posted a £88m loss.

Full-year profits are expected to come in at around £500m.

Chief executive, Steve Rowe, warned about the supply chain issues: “Well-publicised supply chain pressure, combined with pandemic supply interruptions, rising labour costs, EU border challenges and tax increases means the cost incline becomes steeper in the second half and steeper again in the 2022-23 year.”

“That will increase the importance of our productivity plans, store rotation and technology investment.”

AJ Bell investment director Russ Mould commented: “Something spectacular must have happened since August for Marks & Spencer to upgrade earnings guidance once again.”

“Back then, it believed pre-tax profit for the year would be above the upper end of a previously guided £300 million to £350 million range. Now it’s talking about profit hitting £500 million which is quite some jump.”

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