Stuart Rose did not have the look of a worried man today as he presented half-year results to the City in his typical ebullient fashion.

One minute he was showing off the retailer’s cashmere tops, the next a dress with a zip on the back.

“Very handy for Christmas,” he joked.

While like-for-like growth dipped in the second quarter, Mr Rose believes that M&S is in rude health coming into the critical Christmas season and can weather any downturn as well as the competition.

The share price rise today reflects his confidence, as does the 32 per cent increase in the interim dividend, the £1 billion share buyback programme and plans for a step-change in capital expenditure.

About £2 billion will be spent over the next two years as M&S completes its store modernisation programme, grows its online business and seeks to expand overseas.

Mr Rose is focusing the retailer's efforts on India and China, where there is a huge gap for a middle-market operator.

Costs are being controlled elsewhere, not least on labour, with staffing costs up only 1.5 per cent in the half.

Full-year profits could top £1 billion for the first time since 1997.

The shares are trading at 13.9 times earnings, marginally below the sector average of 14.4, and the signs are that M&S will likely close that gap and more over the weeks to come.

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