Marks & Spencer's pre-tax profits rose 17% year-on-year to £408 million, boosted by an 8.1% rise in food sales and 4.7% in clothing, but cost pressures loom.
CEO Stuart Machin warned of uncertain long-term impacts from budgetary changes, predicting £60 million in additional costs due to increased national insurance contributions and payroll expenses.
Machin indicated that while the company plans to absorb additional costs from increases in minimum wage and national insurance, they would seek savings elsewhere rather than passing costs on to consumers.
M&S has reported a significant recovery with a 10% rise in labor inflation, but the company has successfully offset some of this through structural cost reductions.
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