Skip to content

We want to clarify that IG International does not have an official Line account at this time. We have not established any official presence on Line messaging platform. Therefore, any accounts claiming to represent IG International on Line are unauthorized and should be considered as fake.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.
CFDs are complex instruments. 72% of retail client accounts lose money when trading CFDs, with this investment provider. You can lose your money rapidly due to leverage. Please ensure you understand how this product works and whether you can afford to take the high risk of losing money.

Marks and Spencer shares dip despite strong Christmas

The retailer is seeing success in its clothing ranges after years of difficulties

Marks and Spencer shares dip despite strong Christmas trading Source: Bloomberg

Marks & Spencer unveiled buoyant sales in its Christmas trading update on Thursday. The clothing and food retailer saw total UK revenues grow by 9.7% to £3.3 billion or by 7.2% on a like-for-like basis in the 13 weeks to 31 December 2023. UK food sales rose by 10.2%, excluding Ocado sales which are reported separately, and by 6.3% to £2.1 billion on a like-for-like basis, while international sales increased by 12.5% to £312 million.

M&S enjoyed record Christmas food sales on 23 December of £80 million, while its premium M&S Collection also grew sales by over 20% and saw it strong growth in sales of its budget range. However, on the day the shares dipped by 2.5% in initial trading.

M&S clothing expands market share

The company is growing market share in clothing after years of difficulties in the category and poorly performing ranges. Clothing and home sales increased by 8.8% to £1.2 billion during the period.

“M&S sustained trading momentum through the peak quarter and both food and clothing and home have delivered strong growth,” said chief executive Stuart Machin. “M&S Food outperformed the market on volume and value in the critical four-week Christmas period for the second year running and reached its highest ever recorded market share. Clothing and home delivered another outstanding performance, maintaining its market leadership position with its highest market share in seven years.”

M&S shop refit bearing fruit

Marks & Spencer has seen its clothing market share rise above 10% and is benefiting from the resilience of schoolwear and underwear sales, as well as its shop refitting programme. The company is upgrading well-performing high street outlets, while closing underperforming ones and replacing them with purpose-built out-of-town units.

Meanwhile, the retailer says it is seeing the benefits of reshaping the brand as an “omnichannel retailer,” with its platform delivering over 50% growth in third-party brand sales. These include Seasalt, Dune and Hobbs.

The company has also introduced a cost cutting programme to combat inflationary pressures. While it acknowledged the tough economic environment in its outlook statement, the retailer reiterated its previous earnings guidance for the full-year.

Shares in Marks & Spencer have recovered significant headway since hitting year lows of 91.8p in September but are still down 37% over the past 12 months to 146p. Analysts at broker Barclays think the shares could reach 155p, while those at Berenberg Bank think they could hit 198p.

The retailer looks likely to continue to show resilience during the current turbulent economic times. As such, the shares remain a long term buy. Marks & Spencer’s full-year results are due on the 24th May.

Take your position on 17,000+ shares with the UK’s No.1 platform.* Learn more about trading or investing in shares with us, or open an account to get started today.
* Best trading platform as awarded at the ADVFN International Financial Awards 2022


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access
Learn more

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

You might be interested in…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.