Good performance from Marks and Spencer

Marks and Spencer (M&S) has announced an 11.5% rise in half-year profits and said their performance was good in spite of the wet summer but said the short-term retail outlook remains uncertain.

M&S chief executive, Stuart Rose, said the group had a good first half in spite of a tough market influenced by unseasonable trading conditions and this occurred when many of their stores were undergoing major refurbishment.

Mr Rose added that by Christmas 2007, M&S would have modernised 70% of its retail space.

Same-store sales at the high-street retailer, which exclude new store openings, were up 1.6% in the UK compared with 12 months ago.

Total sales for the half-year were £4.2 billion, an increase of 6.5% on the same period last year. Overall UK sales advanced 5.9%, while overseas stores increased 13.8%.

In addition, half-year UK food sales were up 0.5%, while general merchandising sales increased 2.3%.

At present, M&S has 257 overseas stores in 36 countries and believes there is a considerable opportunity to expand their international business and are targeting a 15-20% contribution to group revenues within the next 5 years.

The group concluded that it is proposing to expand into the Chinese market and grow its presence in India, where it has operated for 6 years.

The group recently announced it was appointing 18,000 temporary staff in Britain and Ireland as part of a nationwide recruitment drive.

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