Marks and Spencer posted a better-than-expected 75% jump in profits on Wednesday morning, though warned of an uncertain outlook.
The retailer took nearly a tenth (9.5%) of the UK's clothing & footwear market as pre-tax profits reached £360million for the 26 weeks to September 30.
Food sales rose by 14.7%, women’s denim and casual trousers climbed 17%, while holiday wear sales increased by 18%.
Momentum has continued through October and is expected to do so into the Christmas period, but the chain says a combination of high borrowing costs, erratic weather and geopolitical events may soon weigh on shoppers.
Chief Executive of Marks and Spencer Stuart Machin said: "Our strategy to reshape M&S for growth has delivered strong results in the first half. We have maintained our relentless focus on trusted value, giving our customers exceptional quality product at the best possible price.
"Our cost reduction programme is on track with over £100m savings delivered in the half and investment in supply chain modernisation driving efficiencies, translating volume growth to improved margin and profitability."
He added: "I am clear that if we serve our customers well, we serve our shareholders well, and our unrelenting focus on trusted value is matched by disciplined capital allocation. We have further strengthened our balance sheet and net debt position, with an interim dividend payment being made to shareholders for the first time in four years.
"Looking ahead, trading momentum has been maintained through October, with customers responding positively to our Christmas ranges. There will be challenges and headwinds in the year ahead and progress won't be linear, but we are ambitious for future growth and are driving what is in our control."
FTSE 100
The UK's flagship share index, the FTSE100, was down 24-points at 7,385 shortly after opening this morning.
Meanwhile, Brent crude futures were up 0.12% at $81.71 a barrel this morning.
Companies reporting today
- Disney - Q4 results
- Hiscox - Q3 trading statement
- ITV - Q3 trading statement
- JD Wetherspoon - Q1 trading statament
- Marks and Spender - Half year results