// M&S’s value hits £3.5bn after unexpected spike in sales allows it to raise profit targets
// M&S shares closed 5.1% higher at 179.4p on Wednesday – the highest level since February last year
// However, its shares were worth almost 370p in May 2017
Marks & Spencer shares have reached their highest levels in 17 months in the wake of an unexpected spike in sales and a raising of profit targets last week.
The retailer’s recent trading update – in which it reported a 29.1 per cent year-on-year sales increase in the 19 weeks to August 14 and a profit forecast at the upper end of previous guidance of £300 million-£350 million – took the City by surprise and prompted an upgrade in price targets.
- M&S to close stores on Boxing Day as a “thank you” to staff
- M&S sales rise 29.1% thanks to “fewer promotions”
As a result, M&S’s shares were at their highest level since February last year, before the Covid-19 pandemic wreaked havoc on UK retail and the wider economy.
M&S shares closed 5.1 per cent higher at 179.4p on Wednesday, which values the retail stalwart at £3.5 billion.
However, this still pales in comparison to when its shares were worth almost 370p in May 2017.
M&S is in the middle of a major turnaround scheme under chairman Archie Norman and chief executive Steve Rowe.
The retailer is due to hold an investor day on October 7 to update shareholders on its progress.