Sharecast - In an unexpected market update, the company said like-for-like food sales grew more than 11% in the period as it "sharpened" prices on over 80 products in its 'Remarksable Value' lines designed to attract customers amid the cost-of-living crisis.
Like-for-like Clothing & Home sales grew more than 6%, with strong growth in stores, and more subdued growth in the online channel.
"Sell through rates have been robust and stock into sale was lower than planned," M&S said in a statement, adding that group operating margin continued to be robust, driven by strong store performance and enhanced by its store rotation and renewal programme.
"There remain considerable uncertainties about the economic outlook, and there is a risk that the consumer market will tighten as the year progresses. Nevertheless, we now expect the outcome for the year to show profit growth on 2022-23, and the interim results to show a significant improvement against previous expectations," M&S said.
House broker Shore Capital Markets said: "Noting ongoing uncertainty, keeping feet on the ground, and a favourable Q1 comparative, we upgrade FY24 profit before tax by 9% to £550m, we would expect consensus to follow."
Financial services shares were down as FTSE 100 heavyweight life insurer and asset manager Legal & General recorded a 10% drop in assets under management in the year to end June, hitting its share price.
Official data on Tuesday showed higher-than-expected wage growth in Britain, boosting the chances of further Bank of England interest rate hikes. AJ Bell and Ninety One both fell on the L&G news
FTSE 250 (MCX) 18,673.84 -0.47%
FTSE 250 - Risers
Marks & Spencer Group (MKS (LON:MKS)) 219.60p 7.28%
BH Macro Ltd. GBP Shares (BHMG) 352.50p 3.83%
Bakkavor Group (BAKK) 104.50p 3.47%
Hill and Smith (HILS) 1,772.00p 2.78%
Auction Technology Group (ATG) 748.00p 1.91%
Keller Group (LON:KLR) 829.00p 1.84%
Spire Healthcare Group (SPI) 228.00p 1.79%
Coats Group (LON:COA) 77.30p 1.71%
Bridgepoint Group (Reg S) (BPT) 185.00p 1.43%
Aston Martin Lagonda Global Holdings (AML) 339.00p 1.38%
FTSE 250 - Fallers
Wood Group (John) (WG.) 158.70p -2.88%
FDM Group (Holdings) (LON:FDM) 578.00p -2.69%
Baltic Classifieds Group (BCG) 205.00p -2.61%
TUI (LON:TUIT) AG Reg Shs (DI) (TUI) 565.00p -2.59%
AJ Bell (AJB) 290.00p -2.49%
Ninety One (N91) 168.10p -2.44%
QinetiQ Group (QQ.) 306.00p -2.36%
GCP Infrastructure Investments Ltd (GCP) 71.50p -2.19%
Jlen Environmental Assets Group Limited NPV (JLEN) 98.80p -2.18%
Trainline (TRN) 244.40p -2.16%