What made Marks and Spencer stock jump 8.0% on Tuesday?

August 15, 2023 02:06 PM PDT | By Invezz

What made Marks and Spencer stock jump 8.0% on Tuesday? — Image source: Invezz

Marks and Spencer stock up on raised profit outlook

The multinational agreed that macro-outlook remains uncertain and spending could tighten moving forward – but said profit was still expected to grow this year versus its previous guidance for a decline.

Note that the British firm did not give a particular figure for expected profit, though. That metric had come in at £475.7 million ($603.5 million) in its fiscal 2023.

Marks and Spencer stock jumped this morning also because the retail firm said it continued to gain share in food as well as clothing and home in the first nineteen weeks of its current financial year.

The U.K. stock is now up a whopping 70% year-to-date.

Marks and Spencer says in-store sales are outperforming

Marks and Spencer saw its comparable food sales in the nineteen-week period increase by more than 11% as it continued to focus on quality.

A well-priced collection of fashion items delivered an over 6.0% like-for-like sales growth in the clothing and home segment as well. Marks and Spencer attributed much of the strength to in-store sales while online was more subdued in the said period, as per the press release.

On Tuesday, the London-based retailer also confirmed that its operating margin is keeping strong in fiscal 2024. Sharing their view on Marks and Spencer stock, Shore Capital analysts Clive Black and Darren Shirley said today:

We sense that 13.5x PE ratio would be an appropriate staging post to assess whether the present Marks and Spencer performance has legs, implying a share price of c250p.

The post What made Marks and Spencer stock jump 8.0% on Tuesday? appeared first on Invezz.

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