LONDON (dpa-AFX) - Retail major Marks and Spencer Group Plc or M&S (MAKSY.PK, MAKSF.PK, MKS.L) Tuesday said it aims to achieve mid-to-high single-digit sales growth over the medium-term, with profit growth ahead of sales.
In its trading update ahead of Capital Markets Day, the firm revealed progress against its Reinvesting for Growth transformation agenda.
Over the medium term, the company expects to double food sales over time, having grown annual sales by more than 50 percent since fiscal 2022, and to deliver an operating margin of around 5 percent.
In Fashion, Home & Beauty, the firm aims increasing online participation towards 50 percent with 180 highly productive stores; continuing to gain market share; and delivering operating margins of more than 10 percent in both channels.
In the International region, the company plans to build a more global M&S brand presence through capital-light channels.
The company added, 'Delivering these ambitions will require continued investment in the M&S proposition and the transformation of the Company's end-to-end operating model, with the aim of driving productivity and operating leverage as the business grows. The Group will maintain a disciplined focus on delivering target operating margins supported by accelerated cost reduction.'
M&S further said it is on track to achieve its structural cost reduction objective of £600 million by fiscal 2028 and its investments will help develop the next phase of savings.
In addition, the full year 2027 dividend will double to 8.4 pence from 4.2 pence. It is intended that dividends will grow at least in line with earnings over time.
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