Interim Results for the 26 Weeks Ended 26 September 2026

INTERIM RESULTS FOR THE 26 WEEKS ENDED 26 SEPTEMBER 2026 
ISSUED: 4 NOVEMBER 2026

 “REINVESTING FOR GROWTH”

“We hit the ground running in the first half of the year, accelerating the pace of change and delivering market share growth in both businesses. Our hard work over the last few years to create a strong balance sheet has built a firm financial footing from which to invest and we are confident in the opportunities ahead. Despite the onslaught of cost headwinds, we have remained focused on our ambitions, and we are clear on our plan.

Our Food business is ahead, delivering double-digit volume growth in a flat market and we have momentum as the UK’s fastest growing grocer. One and a half million more customers are shopping with us and our continued focus on quality, innovation and value is appealing to more families, as we become more of a shopping list retailer. Investment in new stores, technology and a modern supply chain are getting us ahead for future growth, and our plan to double the size of the Food business is on track.

In Fashion, Home & Beauty we bounced back from last year, gaining share in a declining market, remaining the UK’s leading fashion retailer and number one for style, quality and value. Availability and stock flow are now improving, we are broadening our appeal and the brand is in good health, but the results fell short of their potential and show there is a lot more to do. We are resetting the backbone of the business from sourcing to supply chain, merchandise planning, stores and online. Although we have much improved product, the end-to-end transformation is in the foothills.

Our International business is growing, expanding through strategic franchise and marketplace partnerships. Ocado Retail is now profitable, supported by strong growth in M&S Food sales. There is work to do, but we see significant opportunities ahead for both.

We enter the second half in a strong position, with a solid performance in October under our belts. We are ready to deliver an unforgettable Christmas for our customers, with the best food and fashion ranges we’ve ever had. I want to thank our colleagues for the energy and commitment they bring to M&S every day, particularly as we enter our busiest time of year, and a special thank you to our customers, who have been unwavering in their support.

Four years ago, we set out a very clear strategy to protect the magic of M&S while modernising the rest and we are making good progress. As we look forward to Christmas, we are laser-focused on delivering both our trading and transformation plans."
 

Stuart Machin
M&S Chief Executive

Sales and profit return to growth in the first half, reflecting recovery from cyber incident

• M&S Group adjusted profit before tax¹ £403.2m, versus £184.1m last year
• Statutory profit before tax £355.1m, versus £3.4m last year
• Food sales² up 13.9%; adjusted operating profit of £288.6m, margin of 5.6%
• Fashion, Home & Beauty sales up 17.5%; adjusted operating profit of £150.5m, margin of 7.5%
• International sales up 22.1%; adjusted operating profit of £15.3m, margin of 4.9%
• Ocado Retail³ sales up 20.6%; adjusted operating profit of £25.6m, margin of 1.4%
• Adjusting items of £51.7m, versus £167.8m last year
• £750m capital investment programme on track across stores, supply chain and technology
• Strong balance sheet, further improvement in net funds excl. lease liabilities of £374.7m and cash and short-term investments of £1,072.1m
• Interim dividend increased by 16.7% to 1.4p

Growing Food and rebuilding market share in Fashion, Home & Beauty

• Food volume growth of 11.9% driven by consistent reinvestment in value and quality
• Fashion gained market share^a in a declining market^b, despite availability constraints
• International growth driven by expansion of franchise and new partnerships, offsetting Middle East disruption
• M&S Food sales on Ocado Retail up 22.8%, now comprising 30.9% of average basket
• Cost growth weighted to first half; over £120m of structural savings expected in full year
• 18 store investments with 13 new or extended stores, 5 renewals including Oxford Street flagship
• Lichfield and Daventry supply chain investments on track, supporting growth and efficiency
• Technology investment increased across FH&B planning tools and digital capabilities

 

 

¹ M&S Group adjusted profit before tax excludes the profit or loss attributable to shares we do not own in subsidiary companies and adjusting items. This measure was introduced from 2025/26 following the consolidation of Ocado Retail Limited. See page 12 for a bridge between this measure and statutory profit. 
² References to ‘sales’ throughout this announcement are statutory revenue plus the gross value of consignment sales ex. VAT plus food franchise rebate payable. 
³ The change of consolidation of the results of ORL from Ocado Group to M&S, was effective from 6 April 2025. Results for 2025/26 therefore relate to the 25-weeks ending 28 September 2025.
Worldpanel sourcing throughout this document is listed on page 10.

Non-GAAP measures and alternative performance measures (APMs) are discussed within this release. A glossary and reconciliation to statutory measures is provided at the end of this document. Adjusted results are consistent with how business performance is measured internally and presented to aid comparison. Refer to Notes 1 and 3 of the financial information for further details.

Reinvesting for growth

The last four years were focused on reshaping M&S. With a stronger balance sheet and higher cash generation, M&S is now reinvesting for growth through a mix of product quality, value, innovation and style, new stores, relocations and renewals, lower-cost supply chain capacity, improved stock flow and modernised technology.

The first half of this year marked the start of the next phase of the strategy. M&S completed investments including 18 new, extended or renewed stores, acquired and constructed additional distribution capacity and relaunched Sparks. Investment will increase in the second half, focused on supply chain modernisation, digital capabilities to support sales growth and improve operational efficiency and to create a more productive store estate.

Against this backdrop, M&S Group adjusted profit before tax was £403.2m compared with £184.1m in the prior year, reflecting recovery from last year's incident. The result compared with £413.1m in 2024/25, reflecting the higher phasing of cost growth in the first half of the year and lower Fashion, Home & Beauty profitability.

Food delivered strong volume-led growth, market share gains^c versus 2024/25 and margin expansion. The business continued to attract new customers, which increased by 1.5 million^d over the past two years.

Fashion, Home & Beauty also gained market share^e, but sales and profit remained below 2024/25, despite growth in online sales. This was due to availability disruption reflecting the long-tail impact of the incident and lower store sales during the prolonged summer heat. The clothing market declined by 5.5% versus 2024/25f.

International and Ocado Retail both increased profit contribution, supported by growth, operational leverage and continued execution of strategic initiatives.

The business has absorbed significant external cost headwinds versus two years ago including approximately £35m of packaging taxes arising from the Extended Producer Responsibility (EPR) scheme, increased pay and National Insurance costs and costs related to disruption in the Middle East, partially offset by our ability to mitigate costs.

M&S closed the first half with a strong, investment-grade balance sheet providing the capacity to reinvest for growth, with net funds excluding lease liabilities of £374.7m and cash and short-term investments of £1,072.1m. The interim dividend has increased by 16.7% versus last year to 1.4 pence, consistent with the policy of paying one-third of the prior full year dividend at the half year. Given continued cash generation and the Group's cash position, the Board remains confident in the ability to deliver growing dividends over time.

Outlook
M&S enters the second half focused on executing its growth strategy. Over the medium-term, M&S’s ambition is to generate mid-to-high single-digit revenue growth and higher growth in profit and earnings per share.

Food continues to outperform the market^g, driven by ongoing investment in value, quality and innovation.

In Fashion, Home & Beauty, market conditions remain challenging. However, performance is expected to improve in the second half compared with the first, as availability has recovered, creating a better balance between core and seasonal stock, and as the FH&B transformation gathers pace.

M&S continues to build its structural cost reduction programme across technology, logistics and stores. Cost growth including marketing was weighted towards the first half while structural cost savings are planned to build through the second half.

For the full year, Food margins are expected to be ahead of 2024/25. In Fashion, Home & Beauty, the actions underway are expected to support a progressive improvement in profitability.
M&S therefore expects Group adjusted profit before tax for the full year to be in line with current market expectations.

FOOD WINNING MORE CUSTOMERS
Our overall ambition for Food set out in 2022, is to grow market share by 1% by 2027/28 and to deliver an operating margin consistently over 4%. Given our low overall market share^h there remains significant opportunity to increase customer numbers and basket size, driving long-term growth.

Sales increased 13.9% versus last year, with like-for-like sales growth of 11.7%. Adjusted operating profit increased to £288.6m and operating margin improved to 5.6%, reflecting strong volume growth alongside the benefits of structural cost reduction, operational leverage across the supply base and improved buying.

26 weeks ended	26 Sep  26 £m	27 Sep  25  £m	Change vs 2025/26 %	28 Sep  24 £m
Sales	5,162.9	4,531.9	13.9%	4,204.5
Operating profit before adjusting items	288.6	89.1	n/a	216.4
Adjusted operating margin	5.6%	2.0%	3.6% pts	5.1%

The Food business has delivered consistent growth and market share gains for the past four yearsⁱ, as it executes its strategy to become a shopping-list retailer. It is increasing its share of main basket spend^j and broadening family appeal through investment in trusted value, quality and innovation, supported by the continued expansion of larger stores.

Investment in value, quality and innovation
Like-for-like growth was broad-based, with core categories performing well. Food continued to invest in trusted value, with over £50m annualised investment in the period, helping drive volume growth and market share gains across key family categories including frozen, grocery and bakery^k.

Fresh food performance benefited from prolonged summer weather and the World Cup, which supported demand across seasonal categories.

Growth through larger Food stores and renewals
The sales contribution from new and expanded stores is increasing. Over the past five years, the average trading space of new Food stores has doubled, supporting a broader customer mission.
During the first half, Food space was opened, renewed or extended in 17 stores, with a particularly strong performance in new, larger locations converted from former Homebase units.

Supply chain capacity and productivity supporting future growth
The Food supply chain transformation programme remains on track, with the new distribution centre at Avonmouth expected to be supporting volumes through the peak Christmas period. Together with development of the Daventry DC, these investments are expected to provide more than 30% additional capacity while reducing cost per case. Prior to their opening, temporary space has been leased to support continued volume growth.

Together, these new distribution centres will strengthen the network, improve productivity and support the continued growth of the Food business into the 2030s.

FASHION, HOME & BEAUTY REBUILDING PROFITABILITY
Fashion, Home & Beauty’s ambition, set out in 2022, is to grow market share by at least 1% by 2027/28 and deliver an on-going operating margin over 10%. Given our large online customer base, significant opportunities remain to increase sales and profitability and to drive long-term growth through improvements to fulfilment, sourcing, buying and stock flow.

Sales increased 17.5% to £2.0bn, with like-for-like sales growth of 17.3%. Adjusted operating profit increased to £150.5m and operating margin to 7.5%, reflecting recovery from the disruption experienced in the prior year. Profit growth was partially offset by the weighting of marketing costs to the first half, and the planned phasing of structural cost reduction into the second half.

26 weeks ended	26 Sep  26 £m	27 Sep  25  £m	Change vs 2025/26 %	28 Sep  24 £m
Sales	1,995.4	1,697.6	17.5%	2,030.5
Operating profit before adjusting items	150.5	46.1	n/a	243.4
Adjusted operating margin	7.5%	2.7%	4.8% pts	12.0%

Despite strong brand health indicators for quality, value and style and further market share growth^l, sales and profit remained below two years ago as the business did not maximise conversion of demand to sales. Availability was constrained due to the longer than expected impact of manual ordering processes following the incident, while profitability was diluted by an increased mix of online sales which have higher fulfilment costs.

Improved customer engagement, with sales impacted by availability
Menswear continued to perform strongly, driven by improvements in product. In womenswear, sales conversion was affected by availability in selected core lines and sizes, due to the impact of the incident. The balance of the range also moved too far towards trend-led newness in some categories.

Ahead of Autumn/Winter, Fashion, Home & Beauty has improved core product availability, through improvements in stock flow and inventory management, while maintaining seasonal newness.
In September, M&S announced a new partnership with Sephora, creating a new beauty destination in selected stores and online from Spring 2027, which is expected to broaden customer appeal, strengthen the Beauty proposition and create opportunities for growth.

Performance reinforces the benefits of store rotation
The store rotation programme aims to create a more focused, productive estate of Full Line stores in growth locations, with increased choice and a better customer experience.

Larger, modern stores continue to outperform. Nonetheless in the first half, overall store sales declined by 5.2% versus 2024/25 as demand continued to shift online during the prolonged summer heat, which was most evident in high street store performance. Online sales increased by 11.2% versus 2024/25, adjusted for the exit from bulky furniture, with online sales participation increasing to 35% from 33% in 2024/25.

The recently renewed Pantheon, Oxford Street flagship store is an example of the potential for larger, modern stores in growing locations and provides a test bed for future Fashion, Home & Beauty investment. Since reopening, sales on the Fashion, Home & Beauty floors have increased 27% versus 2024/25.

Improving availability and reducing cost to serve
The purpose of the end-to-end supply chain strategic programme is to drive better availability, improved fulfilment and lower costs.

M&S is improving planning, buying and merchandising systems and processes to strengthen inventory management, stock flow and product availability. Sourcing initiatives are aimed at increasing the buying margin of core ranges while reducing lead times across seasonal and fast-moving categories.

As online sales have grown, the mix of demand has shifted towards categories with higher customer returns rates. As a result, both fulfilment and returns volumes have increased faster than sales, increasing operating costs and operational complexity, and reducing FH&B operating margin.

This is being addressed with investment in the acquired Lichfield distribution centre and a new, dedicated returns warehouse in Sheffield, which will significantly reduce the handling time and costs involved in returns. Alongside this, capacity improvements at Castle Donington will increase operational efficiency.

Availability and stock flow performance is improving. The actions underway are expected to deliver stronger sales, generate cost savings and drive more profitable growth over time.

INTERNATIONAL INCREASING SOURCES OF GROWTH
M&S’s long-term ambition is to grow the M&S brand globally through franchise partners, online marketplaces and selective wholesale opportunities, leveraging local expertise and infrastructure.
International sales increased by 22.1% versus last year despite disruption from conflict in the Middle East. Operating profit before adjusting items increased to £15.3m from £13.3m, as a result of growth across franchise, marketplace and wholesale channels.

Compared with 2024/25 franchise sales increased by 8.3%, supported by growth in Food and higher Fashion orders as the business continues to reset commercial terms. Online and marketplace sales were up 63.8%, reflecting strong demand in Europe, while the transition to Zeos from M&S fulfilment is beginning to reduce delivery times and costs. Wholesale partnerships with retailers such as Target delivered strong growth from a small base.

OCADO RETAIL GROWTH AND SCALE DRIVING PROFITABILITY
Ocado Retail (ORL) provides access to M&S Food online supported by Ocado Group’s automated fulfilment. The M&S objective is for ORL to be a sustainable, self-funded business, enabled by improved commercial performance.

ORL delivered a strong performance in the period, with revenue increasing by 16.0% versus the comparable 26-week period in the prior year, driven by active customer growth of 14.3% through increased new customer acquisition and improved retention. Order volumes and M&S share of Ocado baskets increased, reflecting the strength in M&S product sales. Customer engagement remained high with increased shopping frequency.

Profit contribution increased substantially, with operating profit of £25.6m compared with a loss of £3.1m in the reported period last year. The improvement reflected strong revenue growth, scale and operating leverage from increased customer fulfilment centre (CFC) throughput, alongside efficiency improvements in service delivery and fulfilment costs. Ocado Retail recorded a positive profit before tax position in the period.

DISCIPLINED CAPITAL ALLOCATION AND INVESTMENT
M&S has the capacity to deliver attractive growth in earnings per share and free cash flow. Capital allocation is focused on driving long-term growth, improving operational efficiency and maintaining a strong balance sheet, while delivering sustainable returns to shareholders.

Capital expenditure, net of disposals, is expected to be approximately £750m in the current year, in line with previous guidance. Investment will continue to prioritise new stores and store rotation, supply chain modernisation and technology, including online. Around two-thirds is directed to Food, and the balance to Fashion, Home & Beauty.

These investments are expected to be funded through operating cash flows. The resulting benefits will deliver increased free cash flow over time, while providing scope to further increase investment.
A strong balance sheet and an investment-grade credit rating are priorities, providing resilience and flexibility to invest, while increasing shareholder returns.

The Board is committed to growing ordinary dividends over time, with the interim dividend increasing 16.7% to 1.4p, equivalent to one third of the prior year total.

Worldpanel references:

For further information, please contact:
Investor Relations
Fraser Ramzan: +44 (0) 7554 227 758
Helen Lee: +44 (0) 7880 294 990

Media Enquiries: 
Corporate Press Office: +44 (0) 20 8718 1919

Investor & Analyst presentation and Q&A: 
A pre-recorded investor and analyst presentation will be available on the Marks and Spencer Group plc website here from 7:30am on 4 November 2026.

Stuart Machin and Alison Dolan will host a Q&A session at 9:30am on 4 November 2026.

For the quickest joining experience, please register prior to attending the call here. After registering, you will be given unique dial in details to join the call. 
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Important Notice: The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the UK version of the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences and prospects are "forward-looking statements" within the meaning of the United States federal securities laws. These forward-looking statements reflect Marks & Spencer's current expectations concerning future events and actual results may differ materially from current expectations or historical results. Any forward-looking statements are subject to various risks and uncertainties, including, but not limited to, failure by Marks & Spencer to predict accurately customer preferences; decline in the demand for products offered by Marks & Spencer; competitive influences; changes in levels of store traffic or consumer spending habits; effectiveness of Marks & Spencer's brand awareness and marketing programmes; general economic conditions including, but not limited to, a downturn in the retail or financial services industries; acts of war or terrorism worldwide; work stoppages, slowdowns or strikes; and changes in financial and equity markets. For further information regarding risks to Marks & Spencer’s business, please consult the risk management section of the 2026 Annual Report (pages 41-47).

The forward-looking statements contained in this document speak only as of the date of this announcement, and Marks & Spencer does not undertake to update any forward-looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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04 Nov 2026 2026 Corporate