"Marks & Spencer has had a good second quarter, growing market share across all parts of the business. Customers are returning to quality," said M&S chief executive Marc Bolland.
"In food, they are responding well to our better value and innovation, and in clothing are increasingly choosing M&S's great fashions and quality that lasts."
However, the group warned that trading conditions were getting tougher, amid a looming increase in value-added taxation (VAT) on goods and services in January, and consumer sentiment also hit by government spending cuts.
"Trading conditions ahead are likely to become more challenging," M&S warned in the statement.
"Consumers' disposable incomes will come under greater pressure from increased VAT rates and public spending cuts.
"We are facing increased commodity prices and significant