The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
British clothing and food retailer Marks & Spencer (M&S) is emerging from the COVID-19 crisis as a very different business that will surprise people with its financial performance, Chairman Archie Norman said on Tuesday.
Norman and chief executive Steve Rowe believe the pandemic has masked progress the 137-year-old group has made in its latest attempt at a turnaround after decades of failures.
They have focused on transforming the culture in M&S, improving the quality and value of its clothing and food products, while reshaping its store estate and investing in technology and e-commerce, including a venture with online supermarket Ocado.
“We sort of feel we’re emerging from the pandemic and lockdown, like emerging from a chrysalis, a new and reshaped business,” Norman told shareholders attending M&S’s annual general meeting, held virtually for a second successive year.
ADVERTISEMENT
“We think we’re going to surprise a few people, not just hopefully with our financial performance but also with the things we do to demonstrate that M&S has really changed,” he said.
Norman, chairman since 2017, said the management had moved on from fixing the basics in the business.
“We’re now into a new phase and we’d like to think that new phase is about growth,” he said, adding this meant expanding sales and market share.
“We’re here to create a growing business, absolutely not in the business of managing decline, we’re investing for the future,” he said, adding the retailer was “very confident” about the year ahead.
In May, M&S reported an 88 percent slump in 2020-21 profit but forecast a rebound in 2021-22.
Shares in M&S closed down 2 percent at 154.4 pence, paring 2021 gains to 13 percent and valuing the business at 3 billion pounds ($4.1 billion).
By James Davey; Editing by Edmund Blair
Fast-growing start-ups like Hettas, Saysh and Moolah Kicks created sneakers designed specifically for active women. The sportswear giants are watching closely.
The companies agreed to cap credit-card swipe fees in one of the most significant antitrust settlements ever, following a legal fight that spanned almost two decades.
In an era of austerity on Wall Street, apparel businesses are more likely to be valued on their profits rather than sales, which usually means lower payouts for founders and investors. That is, if they can find a buyer in the first place.
The fast fashion giant occupies a shrinking middle ground between Shein and Zara. New CEO Daniel Ervér can lay out the path forward when the company reports quarterly results this week.