Marks & Spencer’s (MKS) stock is up the best part of 80% over one year and has rallied 40% year-to-date, driven by positive momentum in both food and clothing and a recent return to the dividend trail which has attracted income seekers.

This suggests the British retail institution will need to deliver a positive outlook and/or another profit upgrade alongside its first-half results (6 November) if its share price re-rating has further to run. Another impending catalyst an investor event (12 November), where management will update the market on the FTSE 100’s retailer’s growth strategy including exciting store renewal and expansion plans.

Under the stewardship of chief executive Stuart Machin, Marks & Spencer has become Britain’s fastest growing supermarket and strong trading is expected to have continued through the first half in food, driven by the retailer’s focus on value and innovation, with Shore Capital expecting sales growth of 8.3% in this division.

Marks & Spencer is consistently delivering market share gains in the revitalised clothing and home division too, although tough prior year comparatives, a cautious UK consumer and unfavourable summer weather suggest first-half sales will have been more subdued, with the division well placed to produce stronger growth in the second half as comparatives ease.

At the interims, investors will also be updated on the performance of M&S International, where analysts anticipate an earnings decline amid challenges in India and Marks & Spencer’s Middle Eastern markets.

Shore Capital believes its year-to-March 2025 adjusted pre-tax profit forecast of £755 million ‘may prove to be conservative’ given the strength Marks & Spencer is displaying in food combined with progress on cost savings. The house broker also sees the medium- to long-term potential at Marks & Spencer as ‘very exciting as it hones in on full year 2028 targets’.

UK UPDATES OVER THE NEXT 7 DAYS

FULL-YEAR RESULTS

4 Nov: EnSilica, Smiths News, ASOS, Associated British Foods

5 Nov: DotDigital

FIRST-HALF RESULTS

5 Nov: Totally, Braemar

7 Nov: Wizz Air, Auto Trader, National Grid, Sainsbury (J), BT, Urban Logistics Reit, Trainline

TRADING STATEMENTS

1 Nov: City of London 

7 Nov: Endeavour Mining, Hikma Pharmaceuticals, Howden Joinery Group

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