Marks & Spencer reported adjusted profit before tax of £403.2 million for the 26 weeks to 26 September 2026, up from £184.1 million a year earlier, when a cyber incident disrupted trading. Group sales rose 16.2% to £9.26 billion, and international sales, where the retailer grows through franchise partners and marketplaces, increased by 22.1%.
The interim results, published on 4 November, show statutory profit before tax of £355.1 million, against £3.4 million in the same period last year. M&S said the adjusted figure reflected recovery from last year’s incident, and compared it with £413.1 million two years ago, before the disruption.
The company attributed that gap to cost growth weighted towards the first half and lower profitability in fashion, home and beauty. The interim dividend rises by 16.7% to 1.4p, and M&S expects full-year adjusted profit to be in line with current market expectations, returns to shareholders rather than to the operators behind brands in the UK franchise directory.
Food sales up 13.9% as larger stores open
Food sales grew by 13.9%, with like-for-like growth of 11.7% and volumes up 11.9%. Adjusted operating profit in food reached £288.6 million, a margin of 5.6%. Over the half, M&S opened, renewed or extended food space in 17 stores, and said new, larger sites converted from former Homebase units performed particularly strongly, a conversion route also used by the food and drink franchises in the UK. Across the group it counted 18 store investments: 13 new or extended stores and five renewals, including its Oxford Street flagship.
Fashion recovers but stays below 2024/25
Fashion, home and beauty sales rose by 17.5% to £2.0 billion, with like-for-like growth of 17.3%, and adjusted operating profit of £150.5 million. Sales and profit nonetheless remained below 2024/25. M&S linked this to stock availability problems left over from the incident and to weaker store sales during the prolonged summer heat. It said the clothing market fell by 5.5% against 2024/25, and that it gained share over the period.
International growth through franchise partners
M&S describes its long-term international ambition as growing the brand through franchise partners, online marketplaces and selected wholesale deals. International sales rose by 22.1% despite disruption from conflict in the Middle East, and operating profit before adjusting items increased to £15.3 million from £13.3 million.
Franchise sales were 8.3% higher than in 2024/25, helped by food and larger fashion orders as M&S resets commercial terms with partners. Online and marketplace sales rose by 63.8%.
What the sales figure includes
The £9.26 billion sales figure is not the statutory revenue line. M&S defines sales as statutory revenue, plus the gross value of consignment sales excluding VAT, plus the food franchise rebate payable. Statutory revenue for the half was £9.17 billion, up 15.4%.
Cost pressures and the second half
Compared with two years ago, M&S said it has absorbed cost increases including around £35 million of packaging taxes under the Extended Producer Responsibility scheme, alongside higher pay and National Insurance costs.
It expects more than £120 million of structural savings in the full year, and its £750 million capital investment programme remains on track. Stuart Machin, chief executive of M&S, said: “We hit the ground running in the first half of the year.” The company reported a solid October and said a new distribution centre at Avonmouth should support volumes over the Christmas peak.
