M&S has posted a much better than expected 75% rise in first-half profit to £360m.
Sales also jumped 10.8% to £6.2bn in the six months to 30 September, with food up almost 15%, as M&S seeked to pull in customers for their full weekly shop with affordable prices.
Clothing and home also grew 5.7% despite unseasonably warm weather in September.
The business achieved the leading position in womenswear in the summer for the first time in four years, taking a 9.5% slice of the UK’s clothing & footwear market.
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M&S said Ocado Retail sales increased 6.9%, adding that the recovery strategy at its joint venture with Ocado has “started to have some impact.”
Active Ocado customers increased, supported by the ‘Big Price Drop’ campaign and an increase in the M&S range available on the website.
But Ocado Retail suffered losses of £23.4m, up from a £700,000 loss last year.
Back in April the retailer took a £16.9m hit from the closure of Ocado’s Hatfield site, which put 2,000 jobs at risk.
Despite the strong sales and profits, the retail stalwart cautioned that the second half of the year was unlikely to be as strong due to an uncertain economic outlook and challenging comparative numbers.
With the festive season approaching, it said that trading momentum had been maintained through October and it was planning for a good Christmas, with customers already responding positively to its ranges.
Chief executive Stuart Machin said: “Our strategy to reshape M&S for growth has delivered strong results in the first half. We have maintained our relentless focus on trusted value, giving our customers exceptional quality product at the best possible price.
“I am clear that if we serve our customers well, we serve our shareholders well, and our unrelenting focus on trusted value is matched by disciplined capital allocation.
“There will be challenges and headwinds in the year ahead and progress won’t be linear, but we are ambitious for future growth and are driving what is in our control.”
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