Marks & Spencer closed the 2025/2026 financial year with significant operational disruption due to a cyber incident that severely impacted its accounts, but the British group claims it maintained its transformation path and returned to growth in the second half of the year.
In detail, the retail giant recorded an adjusted pre-tax profit of £671,4 million, down 23,8% from £881,1 million in the previous year, while statutory pre-tax profit fell 28,8% to £364,6 million.
Overall sales reached £17,37 billion, up 24,8%, also supported by the consolidation of Ocado Retail. Excluding Ocado, sales growth was 1,9%.
The costs related to the cyber incident, which amounted to 131,3 million pounds, mainly weighed on the results, including 292,1 million pounds in adjusting items.
Despite the challenging environment, the group led by Stuart Machin emphasizes that it has maintained a solid financial position, with net funds of £338,2 million excluding lease liabilities and an annual dividend increased by 16,7% to 4,2 pence per share.
The Food business remained the main driver of growth. Food sales increased 7%, thanks to an increase in customers and market share, which rose to 4,1%. The division's adjusted operating profit amounted to £444,5 million, with a margin of 4,6%.
The Fashion, Home & Beauty business fared more poorly, with sales dropping 7,7%, hampered by the temporary disruption to e-commerce and logistics disruptions. The division's adjusted operating profit fell to £213,4 million.
Internationally, sales decreased by 7,2%, also due to delays in shipments to the Middle East, but operating results improved thanks to cost reductions and the revision of franchising agreements.
Commenting on the results, Stuart Machin called 2025/26 “an extraordinary year,” explaining that the company remained focused on customers and approached the crisis period “with transparency and team spirit.”
The British retailer is now looking to the future with an even more ambitious investment plan. For 2026/27, the group will increase capital expenditure to between £650 million and £750 million, allocating approximately two-thirds of the resources to the Food business.
Priorities include supply chain modernization, digital enhancement, and a store renovation and opening program. Over the course of the year, M&S opened 12 new Food stores and three Full Line stores, while also accelerating technology investments and the selective use of artificial intelligence for pricing, waste reduction, and personalized offerings.
The group also aims to achieve £600 million of structural cost reductions between 2022/23 and 2027/28 to offset rising operating costs, taxes and inflationary pressures.
For the current financial year, Marks & Spencer expects a return to profit growth compared to 2024/25, driven primarily by the food segment and the relaunch of Fashion, Home & Beauty through new logistics capabilities and an increasingly style- and value-oriented offering.
