Marks And Spencer Group Plc · LSE:MKS
Marks And Spencer — H1 2026/27 Earnings Presentation
39 slides from Marks And Spencer's earnings presentation, Nov 4, 2026
Slide 1: M&S Reinvesting for Growth - Half Year Results
HALF YEAR RESULTS M&S Reinvesting for Growth 4 NOVEMBER 2026 1
Slide 2: Stuart Machin, Chief Executive
Stuart Machin CHIEF EXECUTIVE 2
Slide 3: Financial headlines
Financial headlines Reinvesting for growth on track M&S Group adjusted profit before tax £403.2m up 119%, against £184.1m in the prior year Statutory profit before tax £355.1m, vs £3.4m prior year Food sales up 13.9%; adjusted operating profit of £288.6m, margin of 5.6% Fashion, Home & Beauty sales
Slide 4: Our strategic priorities
Our strategic priorities Reinvesting for growth QUALITY FOOD, STYLISH CLOTHES, BIGGER FREQUENT CUSTOMER BASE, HOMEWARE AND BEAUTY SHOPPING MORE BROADLY Food drumbeat of quality investment and innovation 1.5m more Food customers over 2 years, with growth in widening family appeal in core categories ‘
Slide 5: Food: Becoming a shopping list retailer
Food Becoming a shopping list retailer Market share growth momentum continues in Food Volume - led growth ahead of the market 4.3% Total 4.3% Like -for -like sales up 11.7%, driven by volume growth in core categories +60 bps a driving Grocery More shoppers, shopping more often for larger baskets 3.8
Slide 6: Food: Reinvesting for growth in new stores and supply chain
Food Reinvesting for growth in new stores and supply chain capacity Estimated contribution to Food sales from new space Larger new stores driving incremental growth 2.2 % Increased activity during H1: seven new stores, three relocations, two extensions, four food renewals & one downsize 0.4 % Averag
Slide 7: Fashion, Home & Beauty: Improving performance and rebuilding momentum
Fashion, Home & Beauty Improving performance and rebuilding momentum Online growth vs LY - 1 driven by younger age groups Brand strength driving share gains in a difficult market By channel By age group #1 for value, quality and style, with quality and style at their highest level to date Market sha
Slide 8: Fashion, Home & Beauty: Doubling the online business
Fashion, Home & Beauty Doubling the online business Store sales holding level despite space decreasing by 12% Investment in new planning tools to support growth Roll out of planning platform to improve stock flow and (12 % ) +1% availability FH&B Owned Space Till Sales (£bn) Buying and merchandising
Slide 9: International: Increasing sources of growth
International Increasing sources of growth International sales increased by 22% despite conflict in the Sales and profit growth despite Middle East disruption Middle East Healthy growth driven by online, franchise and wholesale 7 312 New partnerships offsetting disruption in the Middle East 23 28 Fr
Slide 10: Ocado Retail: Growth and scale driving profitability
Ocado Retail Growth and scale driving profitability M&S share of Basket 31%, over indexing in fresh categories Ocado Retail delivers profit before tax in H1 Sales growth YOY Sales up 16% driven by more active customers, more orders and strength of 35% M&S products Operating profit before adjusting i
Slide 11: Outlook
Outlook M&S enters the second half focused on executing its growth strategy Food continues to outperform the market, 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 secon
Slide 12: Alison Dolan, Chief Financial Officer
Alison Dolan CHIEF FINANCIAL OFFICER 12
Slide 13: Half year financials at a glance
Half year financials at a glance £9.3 bn £403.2 m 14.8 p +16.2 % vs 25/26 +119.0 % vs 25/26 +8.2p vs 25/26 Group sales M&S Group adjusted Adjusted basic earnings profit before tax per share (EPS) £102.2 m £374.7 m 15.3 % Free cash flow Net funds Adjusted return from operations excluding leases on ca
Slide 14: Group profit
Group profit £m H1 26/27 H1 25/26 Change % vs 25/26 H1 24/25 Change % vs 24/25 Food 5,162.9 4,531.9 13.9% 4,204.5 22.8% Fashion, Home & Beauty 1,995.4 1,697.6 17.5% 2,030.5 (1.7%) International 312.2 255.8 22.1% 289.3 7.9% Ocado Retail 1,784.5 1,479.9 20.6% N/A Total Sales 9,255.0 7,965.2 16.2% 6,52
Slide 15: Adjusted profit before tax bridge versus H1 25/26
M&S Group adjusted profit before tax bridge versus H1 25/26 £m 104.4 2.0 0.5 28.7 0.5 403.2 199.5 (16.5) (100.0) 184.1 M&S Group Food Fashion, International M&S Insurance Ocado Net finance Non M&S Group adjusted Home & Financial income Retail cost controlling adjusted profit before Beauty Services i
Slide 16: Adjusted profit before tax bridge versus H1 24/25
M&S Group adjusted profit before tax bridge versus H1 24/25 £m 72.2 16.0 413.1 25.6 403.2 4.6 (24.8) (8.9) (92.9) (1.7) M&S Group Food Fashion, International M&S Ocado Share of Net finance Non M&S Group adjusted Home & Financial Retail loss in cost controlling adjusted profit before Beauty Services
Slide 17: H1 operating cost drivers versus 2024/25
H1 operating cost drivers versus 2024/25 ONE - OFFs £m Furniture Exit: £14m STRUCTURAL COST REDUCTION Retail: £50m Other: £4m Logistics: £22m INFLATION D&T: £14m 120 Pay Review & NICs: £135m Cost Inflation: £40m Other: £7m 2,354 Energy Inflation: £5m (18) 180 28 53 Pay review & NICs: £135m COSTS REL
Slide 18: Food performance
Food performance H1 H1 Change H1 Change 26 weeks ended 26/27 25/26 vs 25/26 24/25 vs 24/25 Sales (£m) 5,163 4,532 13.9% 4,205 22.8% Operating profit before 288.6 89.1 N/A 216.4 33.4% adjusting items (£m) Operating margin % 5.6% 2.0% 3.6% pts 5.1% 0.5% pts 18
Slide 19: Food operating profit margin bridge
Food operating profit margin bridge Operating profit margin % before adjusting items % Operating costs to sales % H1 24/25 5.1 Retail costs 0.1 Gross margin (0.1) Logistics costs 0.1 Digital & Technology 0.0 Operating costs 0.6 Central costs 0.4 H1 26/27 5.6 Total 0.6 19
Slide 20: Fashion, Home & Beauty performance
Fashion, Home & Beauty performance 0.0 % Excluding Furniture Exit Change Change 26 weeks ended H1 26/27 H1 25/26 H1 24/25 vs 25/26 vs 24/25 Sales (£m) 1,995 1,698 17.5% 2,030 (1.7%) Operating profit before adjusting 150.5 46.1 N/A 243.4 (38.2%) items (£m) Operating margin % 7.5% 2.7% 4.8% pts 12.0%
Slide 21: Fashion, Home & Beauty operating profit margin bridge
Fashion, Home & Beauty operating profit margin bridge Operating profit margin before % adjusting items Operating costs to sales % H1 24/25 12.0 Retail costs (0.8) Logistics costs (0.9) Gross margin (0.4) Digital & Technology (0.8) Operating costs (4.1) Central Costs, of which (1.6) Marketing (1.4) H
Slide 22: International performance
International performance H1 H1 Change H1 Change 26 weeks ended 26/27 25/26 vs 25/26 24/25 vs 24/25 Sales (£m) 312.2 255.8 22.1% 289.3 7.9% Franchise 147.3 124.2 18.6% 136.0 8.3% Owned 107.5 109.0 (1.4%) 120.0 (10.4%) Online & Marketplace 37.5 9.9 N/A 22.9 63.8% Wholesale 19.9 12.7 56.7% 10.4 91.3%
Slide 23: Ocado Retail performance
Ocado Retail performance 25 weeks Change 26 weeks ended H1 26/27 H1 25/26 ending 28 Sep vs H1 25/26 25/26 Sales (£m) 1,785 1,539 16.0% 1,480 Operating profit before 25.6 (3.6) n/a (3.1) adjusting items (£m) Operating margin % 1.4% (0.2%) 1.6% pts (0.2%) 23
Slide 24: Disciplined capital allocation
Disciplined capital allocation 1 Generation of free cash flow 2 Invest for growth and structural cost reduction 3 Returns on investment 4 Reducing net debt 5 Value creation for shareholders 24
Slide 25: Free cash flow
Free cash flow Cash flow H1 26/27 H1 25/26 Change vs 25/26 Adjusted operating profit 486.5 251.4 235.1 Depreciation and amortisation 339.9 318.9 21.0 Underlying EBITDA 826.4 570.3 256.1 Cash lease payments (186.9) (180.1) (6.8) Change in working capital 70.5 (334.2) 404.7 Defined benefit scheme pens
Slide 26: Free cash flow from operations H1 26/27
Free cash flow from operations H1 26/27 £m 339.9 826.4 70.5 (50.8) (186.9) (34.7) (21.3) 486.5 102.2 (501.0) Adjusted Depreciation & Underlying Cash lease Working Financial All other Adjusting items Net capex Free cash operating profit Amor tisation EBITDA payments capital interest & tax items in ca
Slide 27: Net debt bridge vs FY 25/26
Net debt bridge vs FY 25/26 FY 25/26 £m Opening net debt including lease commitments (2,411.8) Free cash flow from operations 102.2 Dividends paid (61.5) Surrender payments (2.0) Acquisitions, investments, and divestments (2.3) New lease commitments (226.0) Decrease in lease obligations 130.9 Exchan
Slide 28: Net Debt
Net Debt 26 - Sep - 2026 £m Cash and short -term investments 1 1,072.1 Ocado Retail Borrowing (90.0) Medium Term Notes (607.4) Net funds/ (debt) excluding lease liabilities 374.7 Lease liabilities (2,841.4) Group net debt (2,466.7) 1 Comprises cash and cash equivalents and current financial assets 2
Slide 29: M&S Group capital expenditure
M&S Group capital expenditure Capex net of disposals H1 26/27 Anticipated capex net of disposals FY 26/27 £377.4m £750m £40.6m Maintenance £624m £117.3m Property £530m £402m £390m £145.7m Supply chain £71.8m Digital & Technology Other £2.0m FY23 FY24 FY25 FY26 FY27E 29 Excludes Ocado Retail and move
Slide 30: Structural cost reduction programme
Structural cost reduction programme Delivered H1 26/27 FY28 ambition Numbers to be updated £600m Other FY28 Retail Digital & FY27 c.£120m Technology £59m FY26 £89m FY25 £120m c.£450m Achieved to date Food Logistics FY24 £180m Fashion, Home & Beauty Logistics 30
Slide 31: Balance sheet metrics
Balance sheet metrics £0.5bn £0.5bn £2.4bn £2.3bn £2.3bn £2.3bn £2.3bn £2.2bn £2.2bn £1.1bn £0.4bn £0.4bn (£46m) Net funds (£338m) (£375m) (£448m) Net funds Net funds Net funds Net debt (funds) excluding lease liabilities M&S Lease liabilities Ocado Lease liabilities 31
Slide 32: Summary
Summary The first half reflects recovery from last year’s 1 disruption Food delivered strong sales and profit growth, 2 whilst Fashion, Home & Beauty remains below our expectations International improved profitability despite 3 Middle East disruption, while Ocado Retail improved efficiencies and gre
Slide 33: Appendix
Appendix
Slide 34: Adjusting items
Adjusting items £m H1 26/27 vs H1 25/26 Strategic programmes (33.7) (27.2) Store estate (34.0) (17.5) Organisation 5.9 5.9 FH&B Transformation (4.8) (4.8) D&T Transformation (0.8) 0.1 Other 0.0 (10.9) Other adjusting items (13.5) 142.2 M&S Bank transformation and insurance mis -selling provisions (6
Slide 35: Depreciation and amortisation
Depreciation and amortisation H1 26/27 Ocado All other £m Food FH&B Intl Group Retail segments Adjusted operating profit 288.6 150.5 15.3 25.6 6.5 486.5 Depreciation Tangible Asset 84.9 70.3 6.5 8.9 170.6 Right of use asset 54.5 34.2 13.0 28.1 129.8 Amortisation 15.1 17.1 2.2 1.1 35.5 Write offs & d
Slide 36: Lease liability breakdown
Lease liability breakdown £2,841m Ocado Retail Ocado Retail Full Line £515.4m International £2,841m H1 26/27 M&S £2,326.0m Office, Warehouse & Other Food H1 26/27 36
Slide 37: Stores and selling space
Stores and selling space NUMBER OF STORES Selling space UK Sep 26 Mar 26 Openings Closures Change (m sq. ft) Shopping Centre 1.6 16 16 0 0 0 Retail Park 4.7 84 83 1 0 1 High Street 1.8 61 65 0 (4) (4) High Street - large 4.2 62 63 0 (1) (1) Full Line total 12.3 223 227 1 (5) (4) FH&B only 0.0 1 1 0
Slide 38: Non-controlling interests
Non - controlling interests P&L Sep - 26 Sep - 25 ORL Other Total Total £m £m £m £m Adjusted NCI (Pre Tax) 4.6 (1.0) 3.6 (12.9) NCI adjusting items (4.5) - (4.5) (5.6) Non - controlling interests (Pre Tax) 0.1 (1.0) (0.9) (18.5) Taxation - 0.2 0.2 0.4 Non - controlling interests after tax 0.1 (0.8)
Slide 39: Worldpanel references
Worldpanel references FMCG, 12 week ending 4 October 2026.M&S Yr/Yr growth Buyers, Frequency a and Basket Size b FMCG, 12 week ending 4 October 2026 and previous years. M&S spend share FMCG, 12 week ending 4 October 2026 and previous year. M&S category c spend share th d Fashion, Total Category, Val
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