Mr Machin says the trade momentum has given him “confidence that our plan is working”; Photo: Handout/M&S
Food sales rose 13% for the year thanks to major efforts to improve the quality of the range. In apparel and home goods, sales rose 5.3%. M&S said its market share in clothing and homeware now stood at 10%, down from 9.6% a year earlier.
Mr Machin said: “Both companies have now posted 12 consecutive quarters of sales growth and this trading momentum gives us wind in our sails and confidence that our plan is working.”
However, the retailer said it remained “disappointed” with its Ocado joint venture. While the company said there had been a “noticeable” increase in the online grocer's revenue as it introduced more M&S products, the business's profitability remained “significantly below initial expectations”.
They suggested that certain actions of its partner Ocado Group were putting pressure on financial performance. This included Ocado Group charging a “capacity fee” for its Hatfield site after the online retailer moved to a new site in Luton.
M&S said: “As Ocado Group continues to charge for capacity at Hatfield, we do not currently expect Ocado Retail to benefit fully financially from the move to the new site.”
It comes against the backdrop of a growing tension between the two companies. Last year, Ocado warned it could sue M&S over the final payment for the joint venture, saying the business's profitability had been impacted by actions taken by both parties during the pandemic.
M&S previously argued that Ocado Retail's financial performance “means pay-for-performance criteria were not met.”
In its latest results, M&S said the retail giant had a ” there are a lot of possibilities.” This includes accelerating cost-cutting efforts. M&S now plans to cut costs across its business by £500 million by the start of 2028, having previously planned to save £400 million.
Mr Machin said there was “a lot of work” to do to help the recovery efforts continue, even after a “good year” for the retailer.
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