Marks & Spencer Posts Strong Christmas Sales but Shares Drop Amid Economic Uncertainty
Marks & Spencer (M&S) announced better-than-expected sales for the Christmas quarter on Thursday, driven by robust performance in its food division. The retailer reported a notable 8.9% increase in like-for-like sales in its food business for the 13 weeks ending December 28, surpassing analysts’ expectations of a 7.5% rise.
In other segments, such as ready-to-wear, home, and beauty, M&S saw a 1.9% sales increase, again exceeding the consensus forecast of 1.5%.
Despite these positive results, M&S shares fell by more than 5% on Thursday morning, marking the biggest drop on the FTSE 100 index. However, the stock had gained 7% between November 20 and January 3 in anticipation of a strong festive season, bringing its 12-month gain to approximately 25%.
Looking ahead, M&S expressed confidence in continuing progress through the end of the financial year, which concludes in March. The retailer acknowledged an “uncertain” outlook, citing concerns about economic growth, interest rate trends, and inflation, but remains optimistic about its ability to navigate these challenges.
