M&S Group reports that its sales and profit returned to growth in H1 (ended 26th September 2026), reflecting its recovery from the cyber incident last year.
It has reported an adjusted profit before tax of £403.2m (from £184.1m last year), with statutory PBT at £355.1m, versus £3.4m last year.
Fashion, Home & Beauty sales were up 17.5% – with an adjusted operating profit of £150.5m, and a margin of 7.5%
The retailer says its £750m capital investment programme remains on track across its stores, supply chain and technology. It boasts a "strong" balance sheet, with further improvement in net funds (excluding lease liabilities) of £374.7m, and cash and short-term investments of £1,072.1m, and is looking to rebuild its market share in Fashion, Home & Beauty.
H1 saw 13 new or extended stores established, plus five renewals, including the Oxford Street flagship.
Fashion, Home & Beauty’s ambition, set out in 2022, is to grow market share by at least 1% by 2027/28 and deliver an ongoing operating margin over 10%, says the retailer: "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 £2b, with LFL 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."
“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," says chief executive Stuart Machin. "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.
"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."
M&S Group expects adjusted PBT for the full year to be in line with expectations.
