Shares of Marks and Spencer Group PLC (LON: MKS), or better known as M&S, soared about 7% Wednesday after the fashion retailer reported better-than-expected half-year results.
Despite topping market’s expectations, M&S reported the first-ever loss after the pandemic pushed its finances into the red.
M&S reported that it made a pretax loss before one-off items of £17.4 million pounds for the half-year ending September 26. Still, this is much better than a loss of £59 million expected from analysts. Last year, the company reported a profit of £176 million.
The retailer said that its clothing and home unit saw its sales tumbled by 21.3% in the second quarter, after crashing by 61.5% a quarter earlier. On a more positive note, its joint venture with Ocado has continued to impress.
“My goal remains unchanged – that is to deliver the long-term transformation for M&S, building a brand that is more digital in a world that will never be the same again,” CEO Steve Rowe told journalists during a call.
M&S share price rose around 7% initially before settling down at around 4.5%. Shares are up nearly 8% on a weekly basis.
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