Clothing and food retailer Marks & Spencer Group PLC on Wednesday reported a small gain in profit in the first half though sales in its main U.K. market were down on a comparable basis.
Net profit of 224.3 million ($370 million), at the high end of analysts' forecasts, was half a percent higher than the previous year figure of 223.2 million pounds.
Revenue rose 2.75 percent to 4.36 billion pounds, including a 1.8 percent improvement in M&S' U.K. stores and 12.2 percent in international operations.
On a comparable basis, U.K. sales were down 0.9 percent, with general merchandise off 1.4 percent and food down 0.3 percent.
"We have had a good start to the third quarter," said Chairman and Chief Executive Stuart Rose. "However, the market remains competitive and, as we come up against volatile trading conditions last year, we remain cautious about the outlook for Christmas and the year ahead."
M&S shares were up 5.3 percent at 359.1 pence in midday trading on the London Stock Exchange.
"Given that the company is up against easy comparatives in the third quarter and management refers to a good start to the second half we are upgrading our 2009/10 pretax profits from 620 million pounds to 660 million pounds," said Seymour Pierce analyst Freddie George.
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