Marks & Spencer (LON:MKS) topped analyst estimates with its first annual profit rise in four years and cheering investors with a dividend boost and share buyback.
The high street stalwart, which sells clothes and food, said it made a profit before tax of £661mln in the year to March 28 - a 6.1% rise on last year.
Analysts had expected the figure to be closer £648mln which would have been a 4% increase.
Underling operating profit in the UK climbed 2.8% to £762mln but the business struggled internationally and reported a 25% slide in underlying earnings outside of its home market, hurt by trading in Russia and the Middle East.
Even so, M&S announced today that it would raise its dividend 5.9% to 18p and announced a share buyback programme of £150mln pounds for 2015-16 – the first since 2008.
Chief executive Marc Bolland announced last month that the company had finally arrested a 14-quarter decline in general-merchandise sales, including womenswear, while also managing to grow its food sales in a shrinking market.
For the year, general merchandising gross margin was up by 1.9% while margins across its food business, which opened 62 new Simply Food stores in the period, climbed 0.3%.
"We are transforming M&S into a stronger, more agile business - putting the right infrastructure, capabilities and talent in place to drive our strategic priorities,” he said today.
M&S also gave forecasts for its fiscal 2016 performance, saying it expects gross margins to widen by 1.5- 2% percentage points in its general-merchandise business and 0.1% in its food business.