Fitch: Good results support Marks & Spencer ratings

Fitch Ratings said Marks & Spencer's first-half of the year financial results reflect a good performance in controlling operating costs and a more cautious approach to capital expenditure.

This will support its credit ratings as the retailer continues to face a tough operating environment, Fitch said.

While the agency noted that marketing costs rose sharply, the company has kept growth in staffing, occupancy and distribution expenses below the rate of inflation.

The company also said its operating cost growth for the year will be lower than previously forecast, Fitch said.

It also scaled back its capital expenditure forecast for the year, reflecting a slower roll-out of its store revamps, the agency added.

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