Sales Boost Prompts M&S To Resume Dividends

Sales Boost Prompts M&S To Resume Dividends

Marks & Spencer announced high customer demand and plans to resume paying dividends, despite tight consumer budgets, in its annual results released by new CEO Stuart Machin.

Sales increased more than analysts predicted with 11.5% for food and clothing and 8.7% for home. The total sales for 12 months until April 1 were £3.7 billion and £7.2 billion for food and clothing and home respectively.

Last year in May, Machin became the top boss. He has done some things to keep and entice shoppers like starting Sparks in 25 countries, making fresh "dine-in" bargains, and securing products for distinct intervals.

He said that despite challenges, he is happy with the work from last year and he is looking forward to achieving more this year.

Pre-tax profit increased from £391.7 million to £475.7 million.

Machin and Katie Bickerstaffe are co-ceo of the retailer. They are continuing to shake-up the large estate which was started by Steve Rowe.

M&S will shut down 67 low productivity stores in five years. It will open 104 more Simply Food stores within the same time. The company has about 550 stores at present.

During the pandemic's start, the company stopped giving dividends to keep the balance sheet safe. But now, it says that the operating performance is better, and the balance sheet is stronger, with credit metrics the same as investment grade. So, the company plans to give a little dividend to shareholders. This will start in November when the results come.

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