Premium retailer Marks and Spencer’s like-for-like food sales are up one per cent and underlying profits before tax rose 2.3 per cent to £267.6 million.
The half-year results, for the 26 weeks to 27 September, also showed that pre-tax profits fell by 0.4 per cent to £279.m.
“M&S delivered sales growth and increased profit in the first half despite a tough market, particularly in September,” said M&S chief executive, Marc Bolland.
“We are pleased with the progress we have made against our key priorities for the year: GM gross margin, improving womenswear, driving food growth and cash generation.”
A company statement said that rather than joining the price wars, the M&S food business has focused on developing top-quality ranges.
“We launched over 1,000 new lines in the first half of the year including our new ‘Taste’ range of prepared meals as well as new categories such as frozen meals.
“At the same time, we continue to highlight the great value we offer on everyday essentials in our ‘Simply M&S’ range of around 700 lines, all of which are competitively priced but with added M&S quality,” the statement said.
Partner at business analysts Begbies Traynor, Julie Palmer, said: “With Christmas just around the corner, analysts will be watching Marks and Spencer’s food sales extremely closely, as success here will surely buy Bolland more time for his strategy to bear fruit.
“But the biggest test will be whether the new clothing ranges can help M&S regain some of its market share losses,” she added.
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