By Kathy Sandler
Of DOW JONES NEWSWIRES
LONDON -(Dow Jones)- Analysts will probably increase their full year earnings forecasts for Marks & Spencer Group PLC (MKS.LN) after first-half profits topped expectations, the U.K. retailer's chief finance officer Ian Dyson said Wednesday.
Speaking to reporters on a conference call following the company's interim results, Dyson said that because first-half profit came in about GBP15 million ahead of consensus, analysts are likely to lift their full year consensus, which he said currently stands at around GBP585 million.
The figure refers to the company's pretax profit before the proceeds of property disposals or exceptional items, which is the key figure tracked by U.K. analysts.
Executive chairman Stuart Rose told reporters Wednesday that M&S has been through the worst of the downturn and stability is starting to return, both through improved consumer confidence as well as from the retailer's concerted efforts internally to improve their product offering and tightly control costs.
Still, M&S still voiced caution for Christmas and the New Year, particularly considering the volatility and cutthroat promotional activity seen last year, Rose said.
Marks & Spencer ran several heavily discounted promotional days last Christmas. Rose expects a similar level of promotional activity this year.
Commenting on the Christmas outlook, Rose said that "providing nothing unpleasant happens, I think customers want to celebrate with their families, have some fun and will be looking for quality products and a good Christmas lunch," he said.
-By Kathy Sandler, Dow Jones Newswires; 44-207-842-9293; kathy.sandler@dowjones.com