Investors are finally buying into the story that Marks & Spencer (MKS) is fit for the modern world. Its shares have more than doubled in price since last October and now trade at their highest level since January 2022.Chairman Archie Norman wrote in this year’s annual report: ‘Of all the turnarounds I have been part of, this has been the slowest and most intractable; reflecting the deep-rooted nature of our problems and culture at the “old M&S”, but we are now at last seeing the reshaping of M&S take hold with new energetic leadership, new strong trading results and the prospect of a return to dividends.’

The food business already had a strong position, now it has even broader appeal after the retailer added more value lines. The clothing arm has been given a new look, with more appealing designs and less formalwear. It’s helped that consumer tastes have shifted – the fast-fashion trend has faded and shoppers now want better quality items and they’re finding them in Marks & Spencer.

A wet July presents a short-term risk to earnings although we note that Next (NXT) seems to have got through the month without any major problems. The next scheduled update is half-year results on 8 November.

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