By Ian Walker
Marks & Spencer Group PLC on Wednesday reported a swing to pretax profit for the first half of fiscal 2022 and raised its full-year guidance while warning that labor-market and logistics issues will put pressure on costs.
The U.K. retailer added that it plans to assess the resumption of dividend payments as part of its capital-allocation program once the business returns to sustainable profit growth. No dividend is expected to be paid this year.
Pretax profit for the half year ended Oct. 2 was 187.3 million pounds ($253.9 million) compared with a loss of GBP87.6 million for the comparable half year.
Adjusted pretax profit–a metric that strips out exceptional and other one-off items–was GBP269.4 million compared with a loss of GBP17.4 million for the half year ended Sept. 26, 2020.
M&S said it expects to report an adjusted pretax profit for the full fiscal year of around GBP500 million, up from guidance provided in August of GBP350 million.
Revenue for the half year rose to GBP5.11 billion from GBP4.09 billion. Ocado.com revenue fell 2.7% and contributed net income of GBP28.1 million.
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