M&S to invest more in CX, restore dividend as profits leap

M&S-Woking

High street favourite M&S has announced plans to invest more in raising the quality of customer experience and also said it plans to restart dividend payments this year.

Marks & Spencer made the announcements in its full year results today, which showed full year pre-tax profits jumped 21.4% to £475.4 million.

Group revenue at the company was 9.6% higher at £11.9 billion.

M&S CX

The retailer said it planned to create a more engaging and connected customer experience to drive omni-channel growth.

“This brings together the Sparks loyalty programme and payment options, supported by an effective and more efficient technology infrastructure”, it wrote in its full year results.

Stuart Machin, M&S’ Chief Executive, said: “One year in, our strategy to reshape M&S for growth has driven sustained trading momentum, with both businesses continuing to grow sales and market share.

“Our Food and Clothing & Home businesses invested in value to protect customers from the full force of inflation which, whilst impacting margin, was the right thing to do, as serving our customers well is the only route to delivering for our shareholders.

“Our disciplined approach to capital allocation means we can invest for growth, while further reducing net debt and maintaining investment grade credit metrics, and we plan to resume dividend payments at our interim results.

“M&S is such a special business with so much potential, and I want to thank all of my colleagues for their contribution to these results.

“Delivering performance and driving change is everyone’s responsibility at M&S, and they have done a remarkable job.

“Despite facing significant headwinds, I am encouraged by the strong foundations established last year and excited about what we can achieve in the year ahead.”

M&S shares were trading more than 9% higher at £1.78 on the London Stock Exchange on Wednesday morning.

The high street chain beat the market, which was in negative territory following the latest UK inflation reading, which fell to 8.7%.