Marks&Spencer PLC

Overview Key strengths Key risks Marks&Spencer (M&S) is one of the largest retailers in the U.K., holding leading niche positions in its food and in clothing and home (C&H) segments; a 50% share in the largest independent U.K. online grocery retailer, Ocado; and annual revenue of about £12 billion. Constrained earnings growth due to fierce competition, with rapidly expanding discounters, online, value, and fast-fashion retailers gaining market share Well-known, high quality-centered brand with an extensive store footprint and established omnichannel capabilities in the U.K., plus modest international outreach. Continuous pressure on margins exacerbated by the inflationary headwinds on discretionary spending and increasing costs. Strategic transformation plan yielded like-for-like growth in both food and C&H segments, as well as

...We expect mostly price-driven growth in revenue in the fiscal year ending March 31, 2024 (fiscal 2023) and low-rate expansion thereafter. Continuing on its momentum from fiscal 2021, M&S reported a 9.6% rise in its revenue for fiscal 2022 and increasing its market shares by 20 basis points (bps) to 3.6% in the food segment and by 40bps to 9.3% in the C&H segment. Fiscal 2022 was the first year since the start of the pandemic in which all of the company's stores were open, facilitating recovery during the year. Results also captured a return to pre-pandemic revenue levels of the C&H segment, which is more discretionary in nature, of ú3.7 billion (ú3.5 billion in 2019). After COVID-19 restrictions drove exceptional demand in food segment, the market has progressively normalized since second-half 2022, with retailers investing more in pricing to preserve market share. M&S's food segment in fiscal 2022 saw a 5.4% like-for-like sales growth, supported by its franchise and hospitality business....

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