22 May 2024
If you are covering M&S’s latest financial results, please find below a comment from Chris Beckett, head of equity research at Quilter Cheviot:
“M&S delivered a good set of numbers today and is further evidence that management has a good handle on the business and future is looking brighter. Both divisions are delivering well, with food being a particular stand out. M&S Foodhalls are taking market share from other, larger supermarkets, and is doing so in a very efficient manner. As a result, M&S now has a best in class profit margin, yet remains subscale compared to the big four supermarkets. Management deserves a lot of credit for being able to achieve this, especially given M&S’s entry price point is often significantly higher than its rivals.
“The turnaround plan implemented by management is clearly bearing fruit and for investors there is very little to complain about. There are still some issues it has to contend with, especially its store locations. Some good work has already been done to extract themselves from underperforming high streets, but there is more to go. If it can keep up this sales momentum while this goes on, then the future looks rosy for M&S, but that will be a tall ask, especially as cost of living pressures have not yet been fully extinguished.”
