British retailer Marks & Spencer said its recovery was on track as it posted an 8 per cent rise in underlying first-quarter sales, underscoring the resurgence of one of British retailing's best known brands.
M&S chief executive Stuart Rose, who had previously said that "one swallow doesn't make a summer" when questioned about the durability of the company's recovery, said yesterday he was still not going to declare he had finished the job.
"I have said I am not going to call the recovery until we get into Christmas, but as every quarter makes progress we will get closer," he told reporters.
In an update before its annual shareholder meeting, M&S said like-for-like general merchandise sales rose 10.5 per cent in the 13 weeks to July 1st, with underlying food sales up 5.8 per cent, giving a total rise of 8.2 per cent.
The Irish operations enjoyed even stronger growth than the UK business in the first quarter, boosted by the opening of two new stores in Drogheda and Newbridge.
M&S, which is currently spending more than €20 million refurbishing its stores on Dublin's Mary Street and in Cork, said it had enjoyed double digit growth in its Irish headline sales in the 13 weeks to July 1st.
"We have seen stronger growth than in the UK on the back of the new openings and strong growth in the business," said Neil Hislop, who heads the company's operations in the Republic.
The retailer, which will create 375 jobs in the Republic this year, will open another store in Tallaght later this year.
Mr Rose joined M&S, Britain's biggest clothing retailer, in 2004 to rescue the then struggling company from a £9.1 billion pound sterling bid by billionaire Philip Green.
Since then its shares have more than doubled as Mr Rose focused on streamlining ranges, lowering prices and investing heavily in a hugely successful advertising campaign.
Shares in M&S were steady at 583p yesterday, having dropped to 573p earlier. M&S has outpaced the FTSE 100 by more than 40 per cent through the past 12 months.
Mr Rose said the company's next quarterly update would come up against tougher year-on-year comparisons, but said he was confident M&S had "enough momentum to keep the growth coming".
Mr Rose said the retail sector was particularly challenging given the pressures from discount retailers such as Primark, owned by Associated British Foods, and from grocers such as Tesco.
- (Additional reporting by Reuters)
