Marks & Spencer (LSE: MKS) 1H18 Results: Clothing Better, Food Weak and a Five-Year Plan to “Make M&S Special Again”

Executive Summary

• • Marks & Spencer (M&S) reported group revenues of £5.13 billion for the first half of fiscal 2018, up 2.6% year over year and marginally ahead of the consensus estimate.
  • The long-struggling UK Clothing and Home segment posted sequentially strengthening comparable sales growth. Comps of (0.7)% in 1H18 were split as (1.2)% in 1Q18 and (0.1)% in 2Q18.
  • UK Food comps remained weak relative to an inflationary grocery market and historical segment performance. Comps were down 0.1% in 1H18, declining by 0.1% in both 1Q18 and 2Q18.
  • The company announced a new five-year transformation plan that accelerates its store closure and resizing program.