Marks & Spencer (M&S) has exceeded expectations with a 75% rise in first-half profits, but the retailer remains cautious about future prospects. Despite maintaining trading momentum

through October and expecting a positive response to its Christmas offerings, M&S acknowledges potential challenges on the horizon.

High borrowing costs, unpredictable weather patterns, and geopolitical events are factors that could impact consumers. The economic outlook appears uncertain, particularly due to the highest interest rates in two decades, deflation concerns, geopolitical developments, and erratic weather patterns.

In light of these challenges, M&S anticipates that profits before tax and adjusting items are likely to be weighted toward the first half of the fiscal year, as the company remains committed to its long-term ambition of reshaping M&S for future growth.

For the six months ending September 30th, M&S reported a profit before tax and adjusting items of £360.2 million (€413.8 million), significantly surpassing analysts' average forecast of £276 million and the previous year's figure of £205.5 million.

The company's international sales, which include its Irish business, reached £511.3 million, with £363.2 million generated outside the Republic of Ireland. The international business achieved an 11.3% increase in operating profit, reaching £43.4 million, thanks to cost-saving measures within its logistics and improved efficiency from its distribution hub in Croatia.

M&S Ireland rebounded to profitability last year, despite challenges related to Brexit and the pandemic. The Irish arm of the business reported a pre-tax profit of €31.2 million for the 52 weeks ending April 2nd, compared to a €13 million loss in the previous period. Sales for the same period increased to €325 million from €294 million. Photo by Mtaylor848, Wikimedia commons.