Marks & Spencer has reentered the prestigious FTSE 100 index of the United Kingdom's largest publicly traded companies after a remarkable surge in its share price.

M&S was removed from the index in 2019 due to declining sales and fierce competition.

This year, the company's share price has soared by over 75% following a successful overhaul of its stores and clothing offerings.

CEO Stuart Machin expressed that this development reflects the "dedication" of the team and their unwavering efforts. "Our focus remains on diligently pursuing our objectives and ensuring we maintain our positive trajectory," Mr. Machin stated.

Despite escalating consumer prices, M&S managed to orchestrate a "remarkable" transformation, analysts noted.

Earlier this month, the retailer informed investors that its interim results, set to be disclosed in November, would demonstrate "significant improvement" in its performance.

Susannah Streeter, head of money and markets at brokerage firm Hargreaves Lansdown, highlighted that "streamlining its portfolio and shuttering larger town center stores has also reaped rewards."

The FTSE 100 index encompasses the 100 largest publicly listed firms in the UK, ordered by market capitalization. Inclusion in this index, often referred to as the blue-chip index, is a symbol of prestige, and M&S was one of its founding members.

The index undergoes restructuring four times annually, facilitating the addition of a few companies while a number of laggards transition to the lower-tier FTSE 250.

Notably, housebuilder Persimmon and investment manager Abrdn were among the companies demoted.

M&S has strategic plans to significantly expand its array of external clothing brands available online to attract shoppers away from competitors like Next and John Lewis. The company has already introduced products from brands like Crew Clothing, Nobody's Child, and Joules.

Russ Mould, investment director at AJ Bell brokerage, observed, "M&S' reentry into the FTSE 100 after four years validates the turnaround strategy initiated by Steve Rowe and executed by his successor, Machin."

Mould noted that the food segment has remained consistently strong, partly due to its affluent target audience. Meanwhile, the clothing segment received a substantial boost from the team brought in from the collapsed Arcadia empire of Philip Green, providing it with much-needed momentum. Photo by GianniM, Wikimedia commons.