Marks and Spencer has returned to the FTSE 100, four years after dropping out. This is the latest indication of how the fortunes of this UK retailer are changing.
Index compiler FTSE Russell confirmed this move on Wednesday afternoon, adding that Diploma Technical Products, Hikma Pharmaceuticals, and Dechra Pharmaceuticals will also be joining the blue-chip index as a result of the reshuffle.
Stuart Machin, M&S’s chief executive, said that the “good news” was a “reflection of everyone’s work” following two decades of failed reinventions. However, he warned that this was just “another day” in M&S 139-year-old history.
“The sky did not fall when we left.” . . “It doesn’t affect our priorities today,” wrote he in a LinkedIn post. “We are only as good at what our customers tell us about us.” It’s all about the customers. If we treat them well, then we will also be treating our shareholders well.
M&S was founded in Leeds, England, in 1884 as a small market stall. It became a member of the FTSE 100 in 1984.
Its profit forecast for the year was upgraded this month due to strong sales. Previously, it had struggled with a drop in demand across its clothing and food divisions.
Machin is leading a turnaround for the chain that was started by his predecessor Steve Rowe. He has worked with Archie Norman, chair of the board, and Katie Bickerstaffe, co-chief executive. The stock has risen 83 percent in the last year, as the company begins to achieve its long-promised recovery.
The food business of the company has been boosted by more choices, lower prices in its Remarkable range, and a refurbishment of certain stores to attract new customers. Since Richard Price, a former Tesco executive, took over the clothing and home division in 2020, it has refined its offering, with strong sales for beachwear, linen, and swimwear between April and Juni.
The rebalancing will see asset manager Abrdn and insurer Hiscox leave the FTSE 100 to join the FTSE 250. Johnson Matthey, the manufacturer, and Persimmon, the housebuilder, will also be moving from the FTSE 100.
The quarterly review will be based on market capitalisation at the end of Tuesday’s trading and take effect on September 18th.
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