What: Marks and Spencer (M&S) reported a significant increase in profits and announced its first dividend since 2019, signaling a successful turnaround in its food and clothing divisions.

Why it is important: This turnaround marks a pivotal moment for the 140-year-old retailer, indicating a sustainable recovery and renewed relevance in the competitive retail market.

Marks and Spencer's CEO Stuart Machin declared the onset of "a new M&S" as the company posted impressive financial results, including a pre-tax profit of £716 million for the year ending March 30. The retailer's revenue grew by 9.4% to £13 billion, driven by a 13% rise in food sales and a 5.3% increase in clothing and home sales. This financial resurgence has placed M&S in its strongest position since 1997, leading to an 8% rise in shares and the announcement of a 3p per share dividend. M&S's strategic focus on modernizing clothing ranges and expanding its popular food stores has contributed significantly to its growth, with continued optimism for future performance.

Marks and Spencer chief hails ‘beginnings of a new M&S’ as profits soar