M&S shares soar as first-half profit smashes forecasts. Following a revamp of its food, fashion, and supply chain, Marks & Spencer (M&S) broke first-half estimates and saw a spike in its shares on Wednesday. As a result, the British retailer anticipates a more than 30% increase in full-year earnings.

The firm reported that consumers were already snatching up their Christmas lines and that first-half profit increased by 75%. Additionally, the dividend was reintroduced as promised.

The findings demonstrate that M&S (MKS.L), one of the most well-known brands in British industry, is finally enjoying the benefits of a costly investment program to raise the caliber and value of its food and apparel, modernize its e-commerce and technology, and completely revamp its estate of stores. It now anticipates that the average estimate of experts would increase the yearly profit from 575 million pounds to 640 million pounds ($785 million) from 482 million pounds in 2022–2023.

According to Ian Lance, fund manager of Redwheel, one of M&S’s largest shareholders, “another very strong set of results demonstrates that the strategy to re-shape the business is really starting to deliver,” Reuters said.

Investors elsewhere concur. In almost the past year, the share price has more than quadrupled following nearly ten years of unsuccessful turnaround attempts. On Wednesday, it increased by 10%, valuing M&S at a little less than five billion pounds.

The 139-year-old company reported that its trading momentum had continued into October and was well-positioned for a successful Christmas, with customers already expressing satisfaction with its ranges.

It claimed that improvements to its supply chain had increased sales volumes and improved profitability by enabling it to procure popular garment styles swiftly. It did, however, issue a warning that pressures might increase in the second half of the year due to the abundance of uncertainty surrounding the economic outlook, which includes the highest interest rates in 20 years, geopolitical events, and unpredictable weather.

In contrast to experts’ average prediction of 276 million pounds, M&S recorded a profit of 360.2 million pounds for the six months ending September 30.

Due to gains in market share in each of its businesses, revenue increased 10.8% to 6.13 billion pounds. Sales of food climbed by 14.7%, while those of apparel and homes increased by 5.7%.

M&S reinstated its dividend, as reported in May, with an interim distribution of 1 pence—its first since 2019–20. There may be more, according to Peel Hunt analysts: “The shares have done well, but we are surely not discounting a beat of this magnitude.”