Marks And Spencer Group Plc · LSE:MKS
Marks And Spencer — FY2026 Earnings Presentation
44 slides from Marks And Spencer's earnings presentation, May 20, 2026
Slide 1: M&S Reinvesting for Growth - Full Year Results
FULL YEAR RESULTS M&S Reinvesting for Growth 20 MAY 2026
Slide 2: Stuart Machin, Chief Executive
Stuart Machin CHIEF EXECUTIVE
Slide 3: Financial headlines
Financial headlines Results reflect second half growth following one off impact of cyber incident M&S Group adjusted profit before tax down 23.8% at £671.4m with H2 up 4.1% Statutory profit before tax £364.6m down 28.8% Food sales up 7.0%; adjusted operating profit of £444.5m, margin of 4.6% Fashion
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 Consistent drumbeat of Food product innovation and Becoming a shopping list retailer in Food through quality upgrades ‘winning choices’ programme Fa
Slide 5: Food
Food Delivered strong volume, value and customer growth, despite first half operational challenges VOLUME GROWTH VALUE GROWTH CUSTOMER GROWTH WASTE RECOVERY OUTPERFORMING OUTPERFORMING YEAR ON YEAR BACK ON TRACK THE MARKET THE MARKET 3.1% share 4.1% share +0.1 % pts vs 24/25 +0.2 % pts vs 24/25 14.6
Slide 6: Food: Becoming a shopping list retailer
Food Becoming a shopping list retailer Value Investment driving volumes Driving volume growth and market share gains Like -for -like sales growth of 6.7% and 3.3% UK volume growth in a broadly flat market Over 800k d new shoppers added, supporting market share gains Performance strengthened in the s
Slide 7: Food: Doubling the Food business
Food Doubling the Food business Anticipated payback of FY25 Foodhall store openings Expanding the Food estate through targeted store investment Total Payback 3.3 12 new Food stores opened in the year, including Homebase Selby Three Lakes 1.6 conversions and new full -line locations in Bristol and Ba
Slide 8: Fashion, Home & Beauty
Fashion, Home & Beauty Performance constrained by incident, online trade recovering and progress made on product appeal MARKET SHARE MAINTAINED MAINTAINED ONLINE RECOVERY REFLECTS NUMBER 1 POSITION NUMBER 1 POSITION ACCELERATED IN H2 INCIDENT IMPACT IN QUALITY IN VALUE Sales demand 1 % growth vs LY
Slide 9: Fashion, Home & Beauty: Improving performance and rebuilding momentum
Fashion, Home & Beauty Improving performance and rebuilding momentum Availability 1 improving but remains below last year with actions Trade recovering as disruption impacts ease to address underway Sales returned to growth in the second half following the 95% restoration of online trading Availabil
Slide 10: Fashion, Home & Beauty: Doubling the online business
Fashion, Home & Beauty Doubling the online business Anticipated payback of FY25 Full line store openings Sales constrained in store due to availability challenges, new store performance supporting estate renewal Total Payback 2.9 3 new full -line stores opened trading in line with expectations Store
Slide 11: International: Building a global brand
International Building a global brand H2 improvement in sales driven through Online and Wholesale Cyber incident impacting operations Sales vs LY £m International impacted by a lagging recovery from the incident H1 (11.6%) H2 (2.8%) Total sales down 7.2% with improving H2 performance 11 Wholesale an
Slide 12: Ocado Retail: Delivering profit, optimising growth
Ocado Retail Delivering profit, optimising growth Ocado Retail outperforming the market Strong sales growth and improved profitability 16% Sales up 15.0% driven by more effective customer acquisition and retention, and increased frequency of shop 12% The business remained focused on value for custom
Slide 13: Outlook
Outlook M&S enters 2026/27 with a clear plan and a strong balance sheet, focused on delivering further improvements to availability and service levels Profit growth is expected to resume versus 2024/25 Food continues to drive volume growth through reinvestment in value, quality and innovation and in
Slide 14: Alison Dolan, Chief Financial Officer
Alison Dolan CHIEF FINANCIAL OFFICER
Slide 15: Full year financials at a glance
Full year financials at a glance £14.2 bn £671.4 m 23.8 p +1.9 % vs LY - 23.8 % vs LY - 25.4 % vs LY Group sales M&S Group adjusted Adjusted basic earnings (exc. Ocado Retail) profit before tax per share (EPS) £131.3 m £338.2 m 12.7 % Free cash flow Net funds Adjusted return from operations excludin
Slide 16: Group profit
Group profit £m FY 25/26 FY 24/25 Change £m Change % Food 9,719.3 9,085.7 633.6 7.0% Fashion, Home & Beauty 3,915.5 4,243.4 (327.9) (7.7%) International 543.3 585.2 (41.9) (7.2%) Ocado Retail 3,193.4 - 3,193.4 n/a Group Sales 17,371.5 13,914.3 3,457.2 24.8% Group Sales exc. Ocado Retail 14,178.1 13,
Slide 17: M&S Group sales bridge
M&S Group sales bridge £m (7.7%) vs LY Total Fashion, Home & Beauty 7.0% vs LY (18.4%) vs LY (2.3%) vs LY (7.2%) vs LY 24.8% vs LY 1.9% vs LY 3,193 17,371 634 13,914 14,178 (264) (64) (42) FY25 Group Food Fashion, Home Fashion, Home International Ocado Retail FY26 Group FY26 Group Sales & Beauty & B
Slide 18: M&S Group sales bridge by half
M&S Group sales bridge by half H1, £m 1,480 7,965 6,524 328 6,485 (287) (46) (34) H2, £m 1,713 9,406 7,390 306 23 7,693 (18) (8) FY25 Group Food Fashion, Home Fashion, Home International Ocado Retail FY26 Group FY26 Group Sales & Beauty & Beauty Sales Sales Online Stores (ex Ocado) 18
Slide 19: M&S Group adjusted profit before tax bridge versus last year
M&S Group adjusted profit before tax bridge versus last year £m £310.0m incident driven trading 881.1 impact mitigated by £100m insurance proceeds (47.3) 28.7 15.2 671.4 100.0 9.1 (52.7) 3.2 (264.6) (1.3) M&S Group Food Fashion, International M&S Insurance Ocado Share of Net Non M&S Group adjusted H
Slide 20: M&S Group adjusted profit before tax bridge by half
M&S Group adjusted profit before tax bridge by half H1, £m £324.2m incident driven trading 413.1 impact mitigated by £100m insurance proceeds (127.3) 100.0 16.0 184.1 7.6 (3.1) (25.3) 2.6 (197.3) (2.2) H2, £m £14.2m trading offset 80.0 18.3 12.7 487.3 468.0 0.6 0.9 0.0 1.5 (67.3) (27.4) M&S Group Fo
Slide 21: Adjusting items
Adjusting items FY 25/26 £m Costs associated with the cyber incident (131.3) Incident systems response and recovery (109.3) Third party specialist corporate costs (22.0) Strategic programmes (77 .6) Store estate (84.1) International reset 10.6 Other (4.1) Other adjusting items (71.6) M&S Bank transf
Slide 22: Food performance
Food performance H1 H2 FY FY 52 weeks ended vs LY % vs LY % vs LY % 25/26 25/26 25/26 24/25 Sales (£m) 4,532 7.8% 5,187 6.3% 9,719 9,086 7.0% Operating profit before 89.1 (58.8%) 355.4 29.0% 444.5 491.8 (9.6%) adjusting items (£m) Operating margin % 2.0% (3.1% pts) 6.9% 1.2% pts 4.6% 5.4% (0.8% pts)
Slide 23: Food operating profit margin bridge
Food operating profit margin bridge Operating profit margin H1 H2 FY before adjusting items % Operating costs to sales % FY 24/25 5.1 5.6 5.4 Retail costs (0.2) Gross margin (3.5) 0.6 (1.3) Logistics costs (0.1) Digital & Technology 0.1 Operating costs 0.4 0.7 0.5 Central costs 0.7 FY 25/26 2.0 6.9
Slide 24: Fashion, Home & Beauty performance
Fashion, Home & Beauty performance H1 H2 FY FY 52 weeks ended vs LY % vs LY % vs LY % 25/26 25/26 25/26 24/25 Sales (£m) 1,698 (16.4%) 2,218 0.2% 3,916 4,243 (7.7%) Operating profit before 46.1 (81.1%) 167.3 (28.7%) 213.4 478.0 (55.4%) adjusting items (£m) Operating margin % 2.7% (9.3% pts) 7.5% (3.
Slide 25: Fashion, Home & Beauty operating profit margin bridge
Fashion, Home & Beauty operating profit margin bridge Operating profit margin H1 H2 FY before adjusting items % Operating costs to sales % FY 24/25 12.0 10.6 11.3 Retail costs (2.1) Gross margin (1.6) (3.5) (2.7) Logistics costs (0.7) Digital & Technology (0.7) Operating costs (7.7) 0.4 (3.1) Centra
Slide 26: International performance
International performance Change 52 weeks ended FY 25/26 FY 24/25 vs 24/25 Sales (£m) 543 585 (7.2%) Operating profit before 39.1 35.9 8.9% adjusting items (£m) Operating margin % 7.2% 6.1% 1.1% pts 26 M&S Akasya Mall, Türkiye
Slide 27: Ocado Retail performance
Ocado Retail performance Change 51 weeks 52 weeks ended FY 25/26 FY 24/25 vs 24/25 ending 29 Mar Sales (£m) 3,252 2,827 15.0% 3,193 Operating profit before 14.7 (20.4) n/a 15.2 adjusting items (£m) Operating margin % 0.5% (0.7%) 1.2% pts 0.5% 27
Slide 28: 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 28
Slide 29: Free cash flow
Free cash flow Cash flow FY 25/26 FY 24/25 Change vs FY 24/25 Adjusted operating profit 818.4 984.5 (166.1) Depreciation and amortisation 650.7 542.6 108.1 Underlying EBITDA 1,469.1 1,527.1 (58.0) Cash lease payments (430.0) (343.0) (87.0) Working capital (153.7) (38.6) (115.1) Defined benefit schem
Slide 30: Free cash flow from operations FY26 vs LY principal drivers
Free cash flow from operations FY26 vs LY principal drivers £m Incident Ocado Retail Choices Other 4 43 108 201 (87) (9) (78) (166) (29) £76m (£79m) Ocado Retail consolidation (115) 131 43 (135) (45) Free cash Adjusted Working Taxation Adjusting Depreciation Cash lease Financial Share of Net Defined
Slide 31: Free cash flow from operations FY26
Free cash flow from operations FY26 £m 651 1,469 (430) 818 (154) (19) (10) (131) 131 (594) 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 cash flow flow from
Slide 32: Net debt bridge vs FY25
Net debt bridge vs FY25 £m Opening net debt including lease commitments (1,780) Free cash flow from operations 131 Acquisitions, investments and divestments (116) Surrender payments (24) Dividends paid (77) Ocado Retail net debt and leases acquired (356) New lease commitments (489) Decrease in lease
Slide 33: Capital expenditure
Capital expenditure Capex net of disposals FY26 Plan FY27 capex net of disposals £650 - £750m £624m Food Fashion, Home & Beauty £135m Maintenance c.2/3 Investment for growth £364m Property Maintenance and cost out c.1/3 Property 1 Maintenance Property 1 Supply Chain Supply Chain 2 £115m Supply chain
Slide 34: Structural cost reduction programme
Structural cost reduction programme Delivered 25/26 FY28 ambition £600m Other Digital & Technology FY28 FY27 £120m Property FY26 £89m £89 m Food Logistics FY25 £120m c.£390m Achieved to date Retail Fashion, Home & Beauty Logistics FY24 £180m 34
Slide 35: Balance sheet metrics
Balance sheet metrics £2.6bn £0.5bn £2.4bn £2.3bn £2.3bn £2.2bn £2.2bn £2.3bn £1.4bn £1.1bn £0.4bn £0.4bn (£46m) Net funds (£338m) (£448m) Net funds Net funds 19/20 20/21 21/22 22/23 23/24 24/25 25/26 Net debt (funds) excluding lease liabilities M&S Lease liabilities Ocado Lease liabilities 35 1 FY2
Slide 36: Summary
Summary Trading performance reflects one off impact of Once Alison is 1 cyber incident during the year happy with her script lets tie all the wording across.. Food markdown and waste impact contained to H1. FH&B impact reflects disrupted stock flow, additional 2 markdown and challenged availability
Slide 37: Appendix
Appendix 37
Slide 38: Depreciation and amortisation
Depreciation and amortisation FY 25/26 Ocado All other Insurance £m Food FH&B Intl Group Retail segments Income Adjusting operating profit 444.5 213.4 39.1 15.2 6.2 100.0 818.4 Depreciation Tangible Asset 144.9 145.3 4.7 17.5 - - 312.4 Right of use asset 102.3 63.2 25.0 56.1 - - 246.6 Amortisation 3
Slide 39: Quarterly sales performance
Quarterly sales performance % change vs 24/251 Q1 Q2 Q3 Q4 FY Food 7.1 8.5 5.5 7.1 7.0 Food LFL 7.2 8.3 4.9 6.8 6.7 Fashion, Home & Beauty (20.8) (12.3) (2.6) 4.3 (7.7) Fashion, Home & Beauty LFL (20.2) (12.1) (2.7) 4.3 (7.5) International (26.6) 5.0 0.9 (4.4) (5.7) Ocado n/a n/a n/a n/a n/a Group s
Slide 40: Lease liability breakdown
Lease liability breakdown £2,750m Erith ‘right of use asset’ Ocado Retail Ocado Retail Full Line £482m Ocado Retail consolidation International £2,750m M&S FY 25/26 £2,268m Office, Warehouse & Other Food FY 25/26 40
Slide 41: Stores and selling space
Stores and selling space NUMBER OF STORES Selling space Mar 25 UK Mar 26 1 Openings Closures Change (m sq. ft) Restated Shopping Centre 1.6 16 16 - - - Retail Park 4.6 83 83 1 (1) - High Street 1.9 65 67 0 (2) (2) High Street - large 4.3 63 64 2 (3) (1) Full Line total 12.4 227 230 3 (6) (3) FH&B on
Slide 42: Non-controlling interests
Non - controlling interests P&L 28 Mar 2026 29 Mar 2025 ORL Other Total Total £m £m £m £m Adjusted NCI (Pre Tax) (10.9) (3.8) (14.7) (5.6) NCI adjusting items (12.1) 0.5 (11.6) - Non - controlling interest (23.0) (3.3) (26.3) (5.6) (Pre Tax) Taxation 2.3 0 .8 3.1 1.8 Non - controlling (20.7) (2.5) (
Slide 43: Ocado Retail accounting consolidation principles
Ocado Retail accounting consolidation principles Income statement 100% of Ocado Retail’s results included line -by -line in M&S results M&S Group Adjusted PBT stated after deduction of non controlling interests before tax Balance sheet Assets / liabilities recognised line -by -line in M&S balance sh
Slide 44: Worldpanel references
Worldpanel references FMCG, 52 week ending 22 March 2026 and previous years. M&S Yr/Yr packs growth a difference to total market and volume market share FMCG, 52 week ending 22 March 2026 and previous years. M&S Yr/Yr spend growth b difference to total market and spend market share c FMCG, 52 week e
Marks and Spencer Group — FY2026 Earnings Presentation on 6ix