Marks & Spencer has reported an increase in pre-tax profit of 11.5 per cent for its first half, the 26 weeks to September 29 and revealed further details of its international expansion plans.
In the first half, sales were up 6.5 per cent at£4.2 billion, with UK sales increasing 5.9 per cent and international growing 13.8 per cent. UK like-for-like sales rose 1.6 per cent, with general merchandise climbing 2.3 per cent and food up 0.5 per cent.
In the second quarter, UK sales increased 5.4 per cent and like-for-like sales rose 1.2 per cent.
Chief executive Stuart Rose said: “We had a good first half, despite a tough market affected by unseasonable trading conditions and many of our stores undergoing major refurbishment.
“While the short-term economic outlook remains uncertain, the actions we have taken to reposition and revitalise M&S over the past three years put us in a good position to continue to outperform and give us confidence in the long-term growth prospects of the business.”
M&S will have modernised 70 per cent of its store space by Christmas this year and 90 per cent will be complete by the end of next year. The retailer maintains that its Direct business is on course to generate£500 million of sales by 2010.
M&S plans to invest in developing markets including China and India. It will enter China on a wholly-owned basis, leveraging its operational space in Hong Kong and Taiwan. The first store will open in the next financial year. It has been tradiung for six years in India and wants to accelerate its growth there.
Separately, M&S is to introduce a 5p charge for its plastic bags in England, following a successful trial in Northern Ireland.
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