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Marks and Spencer is back in the FTSE 100 after four years out of the FTSE 100, the latest sign of the British retailer’s changing fortunes.
Index compiler FTSE Russell confirmed the move on Wednesday afternoon, adding that technology product providers Diploma, Hikma Pharmaceuticals and Dechra Pharmaceuticals would also join the blue-chip index after the reshuffle.
M&S chief executive Stuart Machin said it was “good news” after 20 years of failed rebranding and “reflected everyone’s hard work”, but warned the Just “another day” in the company’s 139-year history.
“The sky didn’t fall when we left . . . it didn’t change our priorities today,” he wrote in a post on LinkedIn. “We’re only good if the customers who shop with us today tell us we’re good. That’s what matters, and if we do the right thing for our customers, we’ll do the right thing for our shareholders.”
M&S was established in Leeds in 1884 as a market stall and was one of the founding members of the FTSE 100 which was established in 1984.
The company raised its annual profit forecast this month after strong sales amid slumping demand for food, clothing and home goods.
Pushed by his predecessor Steve Rowe alongside chairman Archie Norman and co-chief executive Katie Bickerstaffe, Machin has been Leading the way in turning the chain around. Shares of the company have risen 83% in the last year as the company begins to deliver on its long-promised recovery.
Its food business benefited from wider selection, lower prices on its Remarksable line and revamped some stores to attract more customers. The company has also rounded out its clothing and home offerings since former Tesco executive Richard Price joined the operation in 2020, with strong sales of beachwear, swimwear and linen between April and June .
Asset manager Abrdn, insurer Hiscox, manufacturer Johnson Matthey and home builder Persimmon will exit the FTSE 100 and enter the FTSE 250 in the rebalancing.
The quarterly review, which allows a small number of companies to move up or down, is based on the company’s market capitalization at Tuesday’s close and will take effect when trading opens on Sept. 18.