Marks & Spencer (M&S) has reported a 75% growth in pre-tax profits year-on-year in its report for the first half of the year.

The retailer recorded £360.2m in its profit before tax and adjusting items in the six months to the end of September 2023, after reporting £205.5m in H1 2022/23.

M&S also saw its food and home and clothing sales increase by 14.7% and 5.7% respectively.

Overall, the group saw its half-year sales increase by 10.1% to £6.2bn.

Chief executive officer at M&S, Stuart Machin, said: “Our strategy to reshape M&S for growth has delivered strong results in the first half. We have maintained our relentless focus on trusted value, giving our customers exceptional quality product at the best possible price. In Food, we delivered over 500 quality upgrades and invested over £30m in price, lowering the price of 200 products and locking prices on 150 customer favourites.

“Our lead on quality perception widened and value perception continued to improve. In clothing and home we backed lines with authority across core and seasonal product, maintaining our lead on quality and value perception and improving our style credentials. As a result, we've sold more product and served more customers across food and clothing and home, with both businesses outperforming the market.”

Despite the increase in profits, Ocado Retail, which was a merger between M&S and Ocado in 2019, saw an adjusted loss of £23.4m, after recording a loss of £700,000 in H1 2022/23. The firm did however record a sales increase of 6.9%.

The retailer has also warned that the second half of its financial year, which includes the Christmas season, is unlikely to be as strong, despite continued momentum in the past month.

In a statement, M&S said: “As we enter 2024, we are not relying on the favourable recent market conditions persisting. The outlook remains uncertain with the probable impact on the consumer of the highest interest rates in 20 years, deflation, geopolitical events, and erratic weather. Notwithstanding this backdrop, we will continue to invest in trusted value for our customers and we are increasing our investment in the reshaping of M&S in the second half.”

Investment director at AJ Bell, Russ Mould, commented: “Machin’s outlook statement that profits will be first-half weighted, given ongoing investment, variable weather, rising interest rates and the uncertain economic outlook is perfectly prudent, but it runs counter to the traditional seasonality of the business. Further increases to consensus estimates look likely, as suggested by the gains in the share price following publication of the figures.”

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