Commentary on M&S annual profits

Three cheers for Marc Bolland, whose concertina turnaround plan has at last given M&S something to celebrate, after the retailer delivered its first increase in annual profits in four years.

Undoubtedly the biggest breakthrough has been in the Group’s general merchandise division which, after 14 consecutive quarters of falling sales, has returned to growth, indicating that its struggling clothing range may have finally turned a corner.

Through investing in the Group’s store portfolio and product innovations, while bringing in the help of top designers and celebrity endorsers, M&S's designs have achieved their goal of winning over both the fashion industry and discerning shoppers alike. In addition, it appears after the Christmas chaos of last year as M&S.com had to delay deliveries by up to two weeks, the Group has finally got it’s ducks in a row for its online platform as sales were back in growth for the final quarter.

However, M&S still has some way to go if it is going to live up to the example set by close rival Next. While M&S may outperform in revenue terms, Next wins  hands down when it comes to profits, suggesting Bolland could drive operational efficiency and boost profit margins still further.

However, the question now on everyone’s lips is; after proving his worth in arguably the toughest job in high street history, will Marc Bolland quit while he's ahead and seek out new challenges? After all, fashion is a fickle business.