Highlights
Group sales +1.0% to £4.9bn
Underlying PBT +2.3% to £268m
Statutory PBT at £279m
GM sales performance impacted by September
GM first half sales -2.3%, LFL -2.9%; Clothing -1.6%, LFL -2.2%
Unseasonal conditions in September adversely impacted the first half by c.1.3%
M&S.com first half sales -6.3%, improving trend and on track for growth ahead of peak trading period
Womenswear performance improved
Sales +1.3% in the first five months of the year with improving trend
Improvement in full price sales with increasingly positive customer feedback
General Merchandise gross margin up strongly
Gross margin +150bps, ahead of full year guidance of +100bps
Significant sourcing gains and lower promotional activity
Food business continues to outperform the market
Food first half sales +3.6%; LFL +1.0%
Specialist positioning continues to set us apart from the competition
Gross margin +25bps
International sales +1.2%, operating profit level
Owned business performed well; franchise impacted by local currency and political issues
Tight control of costs and capex
Operating costs +2.7%, lower than full year guidance of +4%
Capex £176.8m, in line with c.£500-550m full year guidance
Strong cash generation
EBITDA £578.8m, up £37.7m
Free cash flow before dividend and share transactions up £73m
Dividend up 0.2p to 6.4p
Marc Bolland, Chief Executive, said:
"M&S delivered sales growth and increased profit in the first half despite a tough market, particularly in September. We are pleased with the progress we have made against our key priorities for the year: GM gross margin, improving Womenswear, driving Food growth and Cash generation."
