M&S now looking overseas

Marks & Spencer is looking to expand overseas just six months after it announced its controversial withdrawal from continental…

Marks & Spencer is looking to expand overseas just six months after it announced its controversial withdrawal from continental Europe and the US. The news came as the company unveiled fresh evidence of recovery in its core clothing sales in the UK.

As well as rekindling international ambitions, executive chairman Mr Luc Vandevelde is keen to develop the British high street market. He did not specify, but implied that recent growth areas of home and beauty would feature.

M&S yesterday revealed an 18.2 per cent increase in interim British retail operating profit at £147.4 million on flat turnover.

Group like-for-like sales for the half were 1 per cent lower but the second-quarter saw a 2.1 per cent increase, largely led by a recovery in the core women's wear segment. Food sales were 5.4 per cent higher overall, and up 4.2 per cent like-for-like.

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It said its four stores in Ireland continued to perform well over the six month period, with childrenswear particularly strong as it benefited from its back to school campaign. Food sales have been buoyant, helped by the refurbishment of the food section in the Mary Street outlet, it said. The group employs more than 1,500 people in Ireland.

Shares in M&S rose 10 3/4p to 312p sterling as analysts upgraded profit forecasts .