Marks and Spencer upgraded by Moody’s on ‘prospects for further growth’
Marks and Spencer has been upgraded by ratings agency Moody’s, which cited its “strong trading performance” and prospects for more growth.
The boost will be welcome for the high street stalwart which has turned around its fortunes in 2023, with a series of strong results.
Earlier in November, Marks announced hefty profits during the half year, as the firm’s reshaping programme continued to show signs of paying off.
The retailer posted profit before tax of £360.2m up nearly £100m on last figures of £205.5m, while the firm said it would return paying a “modest dividend” — its first in four years. In August, M&S raised its profit outlook.
Moody’s said the upgrade from stable to positive comes after a “strong trading performance in the first half of fiscal 2024 ended 30 September and prospects for further growth”.
The respected ratings agency also praised M&S for its “established market position and improving competitiveness, underpinned by an ongoing multiyear strategic plan aiming to structurally reduce operating costs, raise margins and gain market share”.
This comes as Marks and Spencer joined the FTSE 100 at the start of the year, and has seen its share price rocket by more than 57 per cent.
Its success has paled in comparison to its rivals such as John Lewis, which has struggled to compete with a changing retail landscape.