Marks & Spencer’s general merchandise sales returned to growth after 14 quarters of decline, as food and online sales also performed well. This is what the analysts said.

“This marks a far more positive set of results from Marks & Spencer compared to its post-Christmas trading update. While LFLs are up across all major segments, no doubt the most pleasing details were the return to positive growth in clothing and online.

“Over the quarter, M&S saw its first glimmer of growth in clothing in almost four years, with sales rising 1.2% year-on-year. It also took big steps toward rebuilding its fashion credentials, launching its spring/summer range to a warm reception.

“Furthermore, sharp use of celebrity endorsement and social media has helped to create hype around its much-lauded suede ‘skirt of the season’. As images of style icons Alexa Chung and Olivia Palermo sporting the Autograph design continue to flood the internet, this is just the kind of buzz and energy that could see M&S return to fashion favour.

“To see positive performance in both food and general merchandise – including its core clothing categories – makes a welcome change from the story to which we are more accustomed – that of outperformance in food compensating for declines in clothing.” Anusha Couttigane, Conlumino  

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“Despite demonstrably better ranges, marketing and in-store execution, to our minds at least, the general merchandising trading momentum just did not come through and so quarter after quarter of disappointment followed leaving us to slip back from our previously positive stance. That general merchandise is now potentially turning the corner, admittedly against very favourable multi-year comparatives is, therefore, to be warmly welcomed.

“That UK GM performance rests alongside ongoing out performance by M&S’ Food division. The UK grocery m‎arket has been demonstrably tough with deflation now in the system, albeit an improving volumes position, falling gross margins and evident negative operational gearing and earnings erosion.

“M&S is not immune from the vagaries of the British grocery market but it is as well positioned to our minds to make progress.” Clive Black, Shore Capital

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“Last year this venerable brand came perilously close to becoming an also-ran. Modest though it is, M&S’s turnaround shows it’s not ready to be put out to pasture yet. For a while its hugely successful food range ceased to be a trump card - and began to look like the only card Marc Bolland had left to play. But after a disappointing Christmas, this year the largest part of the business - women’s clothing - has finally begun to make progress.

“A 0.6% like-for-like increase in clothing sales over the quarter will hardly set pulses racing, but as evidence that the brand’s core business has ceased misfiring this modest number is worth its weight in gold for Marc Bolland. He still has a mountain to climb. Look beyond the flagship locations and many M&S stores are still a mess of baffling sub-brands. The re-launched website fails to inspire, and the brand’s ill-starred new distribution centre is still suffering teething problems.

“However Bolland’s cost-cutting and investment plans are showing signs of bearing fruit. Dealing with the brand’s legacy problems will take much longer – but the return to growth after such a long decline will give him the breathing space he needs to drive through more changes.” Paul Thomas, Retail Remedy

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“While there has been a welcome improvement and eagerly awaited return to positive territory on general merchandise’s like-for-like run rate, our central view remains that M&S is a mixed blessing business. The food division has shown its credentials and strong customer appeal through a sustained run of positive quarterly like-for-like sales growth.

“In contrast, and despite the undoubted efforts to change its fortunes, the general merchandise division has been a sadly disappointing corollary, with an equally sustained run of negative quarterly like-for-like sales. Returning to sustainable positive like-for-likes and stopping market share erosion in general merchandise remain key sentiment drivers for us. Just as one swallow does not a summer make, one quarter of positive LFL does not a trend make.” David Jeary, Canaccord Genuity

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“Our sense is that M&S has benefited in these numbers from the quantum of buying gains put in place in general merchandise. This has allowed the late period promotional activity that has contributed to the group getting back into positive sales territory. The actual product has in our view not yet shown continuation of the more positive trends we noted in autumn/winter 2014 before the weather got too warm. Clearly March in particular is still slightly transitional and has also been colder than one would expect for spring ranges, so we are not getting too vexed by product at this stage.

“The food performance has been quite encouraging in our view given the travails of Waitrose. With the possible emergence of more sensible management in the food retail sector, it is possible that M&S will continue to be able to trade on its own terms rather than in-line with a very deflationary sector.” Tony Shiret, BESI Research