M&S shares shift from frumpy to fabulous as pre-tax profits are up by 56%
M&S is performing strongly and has announced it will pay a dividend for the first time since the pandemic.

Marks & Spencer’s shares jumped by 9% on the news it is to pay a dividend for the first time since before Covid, say Oliver Ralph and Euan Healy in the Financial Times. The move comes as “bumper food sales” helped bring about a first-half result that exceeded expectations. Pre-tax profits hit £326m in the six months to 30 September, up by an annual 56%.
The firm says its success was due to “favourable market conditions” and competitors’ exits from the market. The shares have risen by 90% since January, enabling it to rejoin the FTSE 100 index and making it the blue-chip index’s second-best performer after Rolls-Royce.
Both the food and the clothing arms “look in their best shape for years”, says Alistair Osborne in The Times. Food, which has always done well, has been bolstered by “upgrades to 500 products”, as well as “a £30m spend on lowering prices across 200 products and locking them in on 150 more”.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
This has been rewarded with market-share gains, mainly from a “lacklustre Waitrose”, and an 11.7% rise in underlying sales. Like-for-like sales across the clothing section rose by 5.5%, while operating margins jumped from 9.8% to 12.1%, with M&S also benefiting from recent efforts “to wean the group off promotions”.
M&S is now seen as “the UK’s best retailer” for women’s clothes, says Ellie Violet Bramley in The Guardian. Once M&S clothes were seen as either “frumpy” or “at best inoffensive”. But now it is appealing to female customers “who have one eye on Vogue and another on value”.
Much of the credit is down to the director of womenswear, Maddy Evans, who has “helped the brand to develop a better understanding of who their shoppers are”, so it can fill a gap between “fashion-forward but pricey” retailers and those “associated with clothing less likely to last”. Moreover, M&S has had success in third-party brand partnerships, which bring in “a wider demographic”, and has also improved an “antiquated supply chain”.
This article was first published in MoneyWeek's magazine. Enjoy exclusive early access to news, opinion and analysis from our team of financial experts with a MoneyWeek subscription.
Related articles
- How investors can profit from high food prices
- It might confuse the market, but Associated British Foods is a buy
- Marks & Spencer shares look cheap – should you buy in?
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.
He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.
Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.
As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.
Follow Matthew on Twitter: @DrMatthewPartri
-
How Corpay is cashing in on expenses
Financial technology company Corpay has found a profitable niche managing corporate payments
By Dr Matthew Partridge Published
-
Are UK Reits the most unloved asset?
Recent updates from UK Reits are looking more positive, but the market remains entirely unimpressed
By Cris Sholto Heaton Published
-
Why CEOs deserve a pay rise
Opinion The CEOs of big companies often come under fire for being grossly overpaid. But the truth, as per some economists, is the opposite. Do they merit a pay rise?
By Stuart Watkins Published
-
Rolls-Royce stock jumps 15% – could it climb further?
Aircraft-engine group Rolls-Royce’s CEO has been hailed as a hero for spearheading the firm’s recovery. And the future looks bright, says Matthew Partridge
By Dr Matthew Partridge Published
-
The power of private markets
Interview Helen Steers, co-manager of the Pantheon International investment trust, tells MoneyWeek about the vast array of compelling opportunities in private equity
By Andrew Van Sickle Published
-
Vertex Pharmaceuticals is an uncommon opportunity in rare diseases
Vertex Pharmaceuticals operates in a profitable subsector and is poised for further success
By Dr Mike Tubbs Published
-
Global investors have overlooked these top tips in emerging markets
Opinion Chris Tennant, co-portfolio manager of Fidelity Emerging Markets, picks three attractive companies in emerging markets
By Chris Tennant Published
-
King Coal has not been dethroned yet — should you buy?
The demand for coal is only growing, yet investors don’t seem to want to take advantage of the opportunity, says Rupert Hargreaves
By Rupert Hargreaves Published
-
It’s time to start buying Europe again, says Merryn Somerset Webb
Opinion Europe's stocks are cheap and the economic backdrop is starting to look cheerier, says Merryn Somerset Webb
By Merryn Somerset Webb Published
-
Prosus to buy Just Eat for €4.1 billion as takeaway boom fades
Food-delivery platform Just Eat has been gobbled up by a Dutch rival. Now there could be further consolidation in the sector
By Dr Matthew Partridge Published