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RNS Number : 4626M
Marks and Spencer Group PLC
12 January 2023
MARKS AND SPENCER GROUP PLC
CHRISTMAS 2022/2023 TRADING
13 WEEKS TO 31 DECEMBER 2022 *
M&S DELIVERS A STRONG CHRISTMAS TRADING PERFORMANCE
Third quarter sales covering GBPm Total Like-for-Like
Christmas trading, constant Sales %
currency %
------------------------------ ------ ------- --------------
Food 2,110 10.2 6.3
Clothing & Home 1,179 8.8 8.6
Total UK 3,289 9.7 7.2
International 312 12.5
Group 3,601 9.9
Memo:
Clothing & Home online 364 0.7
*Third quarter sales are for 13 weeks to 31 December 2022
compared with 13 weeks to 1 January 2022. On 1 January 2022 most
stores were closed. We estimate this had a positive effect of
c.0.7% on the reported quarter. In addition, total Food sales
growth reflects the impact of 3(rd) party sales by Gist Limited
which had a positive effect of c.2.4%, like for like sales are
unaffected. Ocado Retail sales are not included in this statement
and are reported separately by Ocado Group plc.
Stuart Machin, Chief Executive said: " M&S sustained trading
momentum through the peak quarter and both Food and Clothing &
Home have delivered strong growth.
M&S Food outperformed the market on volume and value in the
critical four-week Christmas period for the second year running and
reached its highest ever recorded market share. Clothing and Home
delivered another outstanding performance, maintaining its market
leadership position with its highest market share in seven
years.
This outperformance was driven by M&S doing what it does
best; exceptional product at value you can trust. Thanks to our
unrivalled quality, innovation and growing style credentials, more
customers shopped with M&S over the Christmas period than in
recent years. I would like to thank all our colleagues for the
fantastic service they delivered.
We saw the benefits of the acceleration in the steps we're
taking to reshape M&S as an omnichannel retailer supported by
an increasingly promising store rotation programme. Our new full
line and renewal stores outperformed expectations, while click and
collect orders increased 20%, and the competitive advantage of
M&S's omnichannel platform was demonstrated by delivering c.50%
growth in third party brand sales. This was supported by
substantial growth in monthly active App users to c.5m.
Given the inflationary pressures impacting our customers and our
business, M&S is taking action to structurally reduce costs and
reinforce our customer proposition. Our singular focus is on
delivering the M&S Reshaped programme to drive growth and value
creation as the UK's leading omnichannel retailer. This performance
across both our businesses provides confidence in delivering our
full year results. "
Food sales increased 10.2% with LFL sales up 6.3%, building on a
strong Christmas performance reported in 2021. M&S outperformed
the market(1) in both value and volume as we invested in quality
and trusted value. The investment we made in Remarksable Value
resulted in very strong growth in volumes with these lines now in
over 20% of baskets. Alongside this, top tier M&S Collection
sales also grew by over 20%. The business generated its largest
ever Christmas sales of over GBP80m on 23 December, supported by
improved availability and strong sell-through of seasonal lines
including turkeys, where M&S retained its leading market share
for the third year running. Sales in new renewal stores performed
well with strong initial sales growth in stores such as London
Colney and Oatlands Harrogate.
Ocado Retail. While not reported in these numbers, M&S
volumes through Ocado Retail represented c.30% of the average
basket on Ocado.com over the Christmas peak.
Clothing & Home sales increased 8.8% with LFL sales up 8.6%
and performance well ahead of the market. C&H achieved over 10%
market share(2) in the period, its highest level since 2015,
reinforcing its market leadership. Store sales increased 12.8% with
standout early performances from new stores such as Colchester and
Chesterfield which are part of the store rotation programme. Online
sales increased 0.7%, driven by growth of 33% through the M&S
App, with a strong performance of click and collect sales. We
generated particularly strong sales growth in menswear, formalwear
increased over 40% and partywear more than doubled. Sales of third
party brands grew c.50% and represented c.8% of online sales in the
period. Stock into sale was in line with plan and clearance rates
to date have been strong.
International sales increased 12.5% at constant currency with
strong retail sales growth in key franchise markets in the Middle
East and owned markets including India.
Balance Sheet. During the period, the Group further strengthened
its balance sheet and liquidity position by extending its GBP850m
Revolving Credit Facility by one year to June 2026.
Profit Guidance. There are clear macro-economic headwinds ahead
and underlying cost pressures, but our strong trading performance
provides confidence that the results for the year will be
consistent with the guidance set out at the Group's interim results
in November.
We will report full year results for the 52 weeks ended 2 April
2022 on 24 May 2023.
For further information, please contact:
Investor Relations:
Fraser Ramzan: +44 (0) 7554 227 758
Sandeep Dasgupta: +44 (0) 7868 735 381
Media enquiries:
Corporate Press Office: +44 (0)20 8718 1919
1. Kantar FMCG Purchase Panel; Total grocery 4 and 12 weeks ended 25 December 2022
2. Kantar Fashion Clothing & Footwear 12 weeks ended 11 December 2022
- Ends -
Statements made in this announcement that look forward in time
or that express management's beliefs, expectations or estimates
regarding future occurrences and prospects are "forward-looking
statements" within the meaning of the United States federal
securities laws. These forward-looking statements reflect Marks
& Spencer's current expectations concerning future events and
actual results may differ materially from current expectations or
historical results. Any forward-looking statements are subject to
various risks and uncertainties, including, but not limited to,
failure by Marks & Spencer to predict accurately customer
preferences; decline in the demand for products offered by Marks
& Spencer; competitive influences; changes in levels of store
traffic or consumer spending habits; effectiveness of Marks &
Spencer's brand awareness and marketing programmes; general
economic conditions including, but not limited to, those related to
the Covid-19 pandemic or a downturn in the retail or financial
services industries; acts of war or terrorism worldwide; work
stoppages, slowdowns or strikes; and changes in financial and
equity markets. For further information regarding risks to Marks
& Spencer's business, please consult the risk management
section of the 2022 Annual Report (pages 45-54).
The forward-looking statements contained in this document speak
only as of the date of this announcement, and Marks & Spencer
does not undertake to update any forward-looking statement to
reflect events or circumstances after the date hereof or to reflect
the occurrence of unanticipated events.
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END
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