Marks & Spencer : Press Release (fy26 rns)

a

ISSUED: 20 MAY 2026

"That was an extraordinary year. We were laser focused on our customers, worked incredibly hard to recover our business, and we came out stronger.

Throughout we were transparent with customers and they rewarded us with their loyalty. We remain the UK's most trusted brand, and we never take that for granted. We aim to serve our customers better every day, and we thank them for shopping with us. We continue to invest in the value, quality and innovation that they look for in M&S.

A resilient balance sheet supported by the hard work done on our cash position in recent years allowed us to absorb the cost of disruption without compromising our financial health. With strong net funds we continued our transformation at pace, completing our most ambitious year in a decade of opening new and renewal stores alongside significant advances in supply chain and digital capability.

Progress would not have been possible without our colleagues across every part of M&S. We faced into this challenge together: one team, sleeves rolled up, forging the culture we need to transform. The commitment they have shown through a demanding year has been nothing short of exceptional, and I thank each one of them for playing their part. We have a renewed sense of purpose and you can feel that energy and determination around the business today. We are fast-paced, still positively dissatisfied, and always aiming higher.

Food was our standout performer as more customers than ever chose M&S Food for its quality, innovation, and value. Performance accelerated in the second half, returns were strong, and we continue to outperform the market with the prospect of more growth to come.

In Fashion, Home & Beauty we delivered leading style credentials at the best possible value, and this resonated with customers. Recovery has taken longer, but there is strong growth potential. To support this, we have accelerated our supply chain improvements, acquiring a fully automated fashion distribution site in Lichfield to increase capacity and deliver new styles faster.

Retailers face a triple whammy of headwinds with increased taxation, a greater regulatory burden and ongoing global conflict. At M&S we are unshaken by short-term events. We have a clear plan and there is much within our control as we reinvest in value and quality for our customers.

Our job is to protect the magic of M&S while modernising the rest. We've now got the momentum to do that at pace. We have a strong culture, a hard-working focused team, and a growth business. There's an extraordinary opportunity ahead, and we are on it."

Stuart Machin M&S Chief Executive

• M&S Group adjusted profit before tax1 down 23.8% at £671.4m with H2 up 4.1%

• Statutory profit before tax down 28.8% at £364.6m

• Food sales2 up 7.0%; adjusted operating profit of £444.5m, margin of 4.6%

• Fashion, Home & Beauty sales down 7.7%; adjusted operating profit of £213.4m, margin of 5.5%

• International3 sales down 7.2%; adjusted operating profit of £39.1m, margin of 7.2%

• Adjusting items of £292.1m includes £131.3m of incident-related costs

• Insurance proceeds of £100.0m, in respect of incident, recorded centrally in adjusted profit

• Strong balance sheet position, net funds excluding lease liabilities of £338.2m

• Revolving credit facility renewed and £300m bond buyback and reissue completed

• Full year dividend increased by 16.7% to 4.2p

  Transformation progress maintained

• Food volume growth underpinned by consistent investment in value, quality, innovation and longterm supplier commitments

• Fashion style perception metrics improved, despite incident disruption

• International franchise terms are being reset. New partnerships delivering growth

• Structural cost reduction of £89m funding reinvestment and resilience

• Expanded store opening programme with 12 new Food and 3 Full Line stores

• Capacity secured for Fashion online and Food supply chains to support long-term growth

• Digital & Technology investment increasing, including in online platform and planning systems

• Sparks relaunched with wallet-based rewards to drive greater personalisation and engagement

1 M&S Group adjusted profit before tax excludes the profit or loss attributable to shares we do not own in subsidiary companies and adjusting items. This measure was introduced from 2025/26 following the consolidation of Ocado Retail Limited. See page 12 for a bridge between this measure and statutory profit.

2 References to 'sales' throughout this announcement are statutory revenue plus the gross value of consignment sales ex. VAT.

3 Results of the Channel Islands have been reclassified from International to be reported within either Food or Fashion, Home & Beauty.

4 Lease surrender payments have been split out from cash lease payments and are now within free cash flow but no longer within free cash flow from operations.

5 Net debt now includes the M&S Travel Money Revolving Credit Facility agreement with Eurochange (£9.8m).

6 Statutory profit after tax includes losses attributable to non-controlling interests of £23.2m (2024/25: £3.8m), driven by consolidation of Ocado Retail Limited.

a-h Worldpanel sourcing throughout this document is listed on page 11.

Non-GAAP measures and alternative performance measures (APMs) are discussed within this release. A glossary and reconciliation to statutory measures is provided at the end of this document. Adjusted results are consistent with how business performance is measured internally and presented to aid comparison. Refer to Notes 1 and 3 of the financial information for further details.

Performance in 2025/26 was a year of two halves: significant operational impact from the cyber incident during the first, followed by a return to sales and profit growth in the second. Despite the disruption, M&S made further progress on its transformation, enabled by a strong balance sheet and sustained net funds position.

In 2025/26, M&S Group adjusted profit before tax was £671.4m down from £881.1m. Second half adjusted profit increased 4.1% year-on-year, as growth in Food more than offset the decline in Fashion, Home & Beauty.

Food sales grew 7.0% as customer numbersa increased and market share grew 17bps to 4.1%b. Food invested in trusted value, increased quality and made regular new product launches. Adjusted operating profit was £444.5m down from £491.8m in the prior year, reflecting sustained volume growth in H2 following the impact of increased markdown and waste in H1.

Fashion, Home & Beauty sales declined 7.7%, reflecting the temporary pause in online trading and systems access, which disrupted stock flow and restricted availability. Despite these operational challenges, customer perceptions of style saw an encouraging improvement. Adjusted operating profit was £213.4m down from £478.0m in the prior year, reflecting the markdown and clearance of excess seasonal stock related to the incident, principally in H2.

International reported sales declined 7.2% with an improving performance in H2, partly offset by shipment delays to the Middle East in the final month of the financial year. Adjusted operating profit increased to £39.1m from £35.9m in the prior year driven by reduced costs, as International began to reset franchise agreements and built new wholesale and online marketplace partnerships.

During the incident, teams operated with pace and accountability, prioritising customers, recovering the business and maintaining delivery of the transformation.

M&S enters 2026/27 with increased focus on its three core investment programmes of supply chain modernisation, technology transformation and store rotation. As outlined at last year's Capital Markets Event, the year ahead sees a step-up in investment for growth, and in cost savings ambition.

A pipeline of new, high-volume store openings has been developed. Supply chain capacity is being increased with investment focused on enabling volume growth and reducing cost to serve. Near-term online improvements are focused on search, imagery, check-out and payments.

Digital and technology investment in the fashion planning platform, food warehouse management systems and e-commerce platform improvements restarted in the second half. The next phase prioritises simplification of the technology estate and driving online growth. AI is being used selectively where it reduces cost or improves decisions including pricing, waste reduction and personalised customer offers.

Sparks has been relaunched, focusing on wallet-based customer rewards, laying the groundwork for greater personalisation and engagement.

Structural cost reduction of £600m is targeted between 2022/23 and 2027/28. Initiatives are expected to deliver increased in year savings, helping to offset frontline colleague pay inflation and government tax levies.

The strategy supports medium-term growth in revenue, earnings per share and free cash flow and capital allocation priorities reflect this. This year M&S capital expenditure will increase to c.£650m-

£750m, with approximately two-thirds targeting the long-term growth opportunity in Food.

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 increased new store openings. Fashion, Home & Beauty's priority is delivering growth on the back of stronger style credentials and new supply chain capabilities.

The outlook for the current year includes higher fuel, freight and input costs and continued government tax levies and regulatory headwinds for the sector. These are being mitigated through improved buying, reinvestment in value to drive volume, and savings from the structural cost reduction programme.

Further progress on the transformation is anticipated in the year ahead, as M&S reinvests for growth.

Food sales increased 7.0% to £9.7bn with like-for-like sales growth of 6.7%. Adjusted operating profit declined by 9.6% to £444.5m as additional markdown and waste impacted the first half. This was partly offset in the second half following a strong operational Christmas and sustained growth in the final quarter. M&S UK volume grew 3.3% in a broadly flat marketc, with over 800,000 additional shoppers in the yeard.

Product improved further, with upgrades to quality broadening customer appeal. Highlights included growth in core categories including poultry, produce and bakery.

• Value investment included 'Dropped & Locked' and 'Remarksable' pricing focused on core categories such as protein and produce, with a strong volume response to price reductions.

• Quality was upgraded in more than 1,000 products including Italian and Indian meals and flowers, as suppliers invested in new technology and facilities at M&S dedicated sites under long-term 'Fortress Factory' agreements.

• Over 1,400 new lines were launched during the year, driving customer engagement. This included the 'only…ingredients' and 'nutrient dense' ranges, strengthening M&S' health credentials.

  M&S takes a long-term approach to supplier relationships, with contractual commitments that secure supply and support British farming. This includes new decade-long agreements for British lamb and beef signed during the year.

  New larger Food stores driving growth

  The long-term ambition is to double Food sales supported by investment in new stores, with a plan for 380 Food stores by 2027/28. 12 new Food stores opened, including three conversions of former Homebase stores, and three new full-line stores. These larger format stores have performed ahead of expectations.

  The table below illustrates the sales and estimated cash contribution during the first 12 months of trading relating to five Food stores which opened in 2024/25.

  New Store Performance		Investment Metrics
  Sales	Cash contribution	Capex spend	Anticipated payback
  £90.0m	£8.9m	£17.6m	3.3 years

  In the year ahead 18 new openings and three extensions are planned, bringing the full M&S range to more customers.

  Investing in modern supply chain capacity for long-term growth

  M&S Food volumes have grown strongly over the past five years reducing spare capacity and creating the need for temporary warehousing and causing deliveries from more distant depots, putting upward pressure on costs.

  The acquisition of Gist in 2022 has delivered substantial cost savings and an attractive return on capital, equating to a three-year payback. Investment is increasing capacity and automation to consolidate the network and to support volume growth into the 2030's. There will be temporary costs in the short term, but as investments are delivered, cost per case will reduce.

  In 2026/27, investment focuses on a regional distribution centre in Avonmouth and in the previously announced national distribution centre in Daventry. While construction is completed, additional temporary space will be leased.

  Fashion, Home & Beauty: Reshaping the business, supply chain and systems

  Sales declined by 7.7% to £3.9bn, with adjusted operating profit down 55.4% to £213.4m and an adjusted operating margin of 5.5%. Sales grew 0.2% in the second half, reflecting the restoration of online trading although performance remained constrained by the long tail impact of the incident on availability and the clearance of excess seasonal stock in the Sale. The effect on availability is now tapering, and new ranges are resonating well with customers.

  Recognition of M&S quality, value and style

  While the incident resulted in reduced sales and market sharee, further progress was made on product appeal with growing customer numbers in the second halff and improved perceptions for style in the year.

• Womenswear saw the greatest impact from the incident but continued to make progress creating a more edited range in store with 9% of options removed for Spring/Summer.

• Menswear grew sales of denim and casual tops contributing to strong retail market shareg.

• Lingerie sold 1.8 million £10 bras and new sleepwear ranges performed well.

• Kidswear opening price points were reduced as the business seeks to reposition its ranges.

  Robust new store performance despite online constraints

  Fashion, Home & Beauty's ambition is to double online sales, improve profitability and increase online participation to 50%. Alongside this, it aims to generate sustainable store sales through a profitable, focused group of 200 full-line stores by 2027/28.

  Online returned to modest growth in the second half. Near term focus is on improving shopping experience in areas such as search, imagery, check-out and payments. In parallel, e-commerce platform modernisation will enable faster change. Product-focused marketing has increased, and Sparks has been relaunched, with the aim of improved personalisation and enabling customers to spend their rewards across M&S from a new wallet-based offer.

  A new full-line store was opened in Bristol Cabot Circus, Bath was relocated, and Doncaster Wheatley was extended. These stores have traded ahead of expectations.

  The table below illustrates the sales and estimated cash contribution during the first 12 months of trading relating to full line stores which opened in 2024/25.

  New Store Performance		Investment Metrics
  Sales	Cash contribution	Capex spend	Anticipated payback
  £158.5m	£34.0m	£38.6m	2.9 years

  Rewiring the end-to-end supply chain and investing in capacity for growth

  With improving product appeal, the priority now is to tackle legacy supply chain constraints across commercial planning, logistics, sourcing and online and the pace of change is increasing.

• Supply chain capacity is expanding to reduce split shipments, improve customer service and lower costs. The recently announced investment in a 437,000 sq. ft. automated distribution centre in Lichfield will accelerate the expansion of online capacity earlier and at a lower capital cost than originally planned, while supporting network consolidation. It is expected that the new facility will start fulfilling customer orders in 2027, with a phased ramp-up thereafter. Additional boxed storage at Bradford and automated sortation capacity at Castle Donington will be delivered this year.

• Buying and merchandising teams are introducing shorter lead times for seasonal products and trends, while buying core lines year-round. This is enabled by the roll out of the planning platform and further sourcing consolidation.

• Operational efficiency is improving, with store friendly deliveries and additional returns capacity being implemented which will reduce handling costs and accelerate resale.

  International: Capital light growth

  With M&S having strong UK brand recognition, there is long-term potential to build a global brand presence through targeted capital light expansion. In 2025/26, International was impacted by a lagging recovery from the incident followed by the effects of the Middle East war.

  Sales were down 7.2% (5.7% at constant currency) with an improving performance in the second half. New business in wholesale and marketplaces partly offset declines in owned and franchise, despite shipment delays to the Middle East in the final month of the year.

  Operating profit before adjusting items increased to £39.1m from £35.9m, driven by reduced costs in owned markets.

• Franchise terms are being reset to enable investment in trusted value. Where lower prices have been implemented there has been encouraging volume growth.

• Online sales are starting to grow through marketplaces, with expanded ranges on Zalando in Europe. European customer fulfilment is transitioning to Zeos, which offers the prospect of improved service, availability and reduced costs.

• Wholesale is growing selectively from a small base through new agreements with retailers such as Coles in Australia for Food and Nordstrom in the US for Fashion.

  In the year ahead the International result may be constrained by the disruption to deliveries to Middle East partners, where annual sales were approximately c.£100m in 2025/26.

  Ocado Retail delivers modest operating profit for the year

  Ocado Retail combines M&S Food with Ocado Group's automated fulfilment to offer differentiated online choice, service and customer experience. The M&S objective is for it to be a sustainable self-funded business, enabled by improved commercial performance.

  Results for the current period relate to the 51-weeks ended 29 March 2026 and reflect revenue of

  £3.2bn and an adjusted operating profit of £15.2m. The joint venture was accounted for via the equity method in the prior period. M&S products drove sales on Ocado.com and were up 17.7% to more than £1bn during the year. Combined with increased customer fulfilment centre (CFC) efficiency this resulted in an improved performance.

  Disciplined capital allocation and investment

  M&S has the capacity to deliver attractive compound growth in earnings per share and free cash flow. From a starting point of improved commercial performance and a strong balance sheet, capital allocation reflects this.

  In 2026/27, M&S capital expenditure net of disposals will be c.£650-£750m in line with previous forecasts, with approximately £150m on maintenance investment and the balance on growth and cost out spend. Approximately two-thirds of this is allocated to Food, which has been the fastest growing and highest returning business, and the balance will go to Fashion, Home & Beauty.

  Anticipated 2026/27 capital expenditure:

  2026/27 Total maintenance

  Property Supply chain

  Digital & Technology Other

  Total growth & cost out M&S capital expenditure Property disposals Lichfield investment M&S capital expenditure £m £150m

  £200m

  £200m

  £140m

  £20m

  £560m £710m

  (£40m)

  £70m

  £740m

• Property investment includes 18 new Food stores, four extensions and two full-line stores alongside additional renewals.

• Supply chain is weighted to Food reflecting the previously announced construction and automation of the Avonmouth regional distribution centre and the fit out of Daventry national distribution centre. Fashion, Home & Beauty capex reflects the integration of the recently acquired Lichfield warehouse.

• Digital & Technology is weighted towards Fashion, Home & Beauty reflecting the planning platform roll out, online experience improvements and retail productivity initiatives.

A strong balance sheet remains a priority. Increased free cash flow from operations is planned in the year ahead, supported by reduced working capital.

Dividends remain conservative, reflecting the current investment phase. The Board is proposing a final dividend of 3.0p per share, taking the full-year dividend to 4.2p per share, an increase of 16.7% on last year.

1. FMCG, 52 week ending 22 March 2026. M&S Yr/Yr buyers

2. FMCG, 52 week ending 22 March 2026. M&S Yr/Yr spend share

3. FMCG, 52 week ending 22 March 2026. Total Market Yr/Yr packs

4. FMCG, 52 week ending 22 March 2026. M&S Yr/Yr buyers

5. Fashion, 52 week ending to 29 March 2026. M&S Yr/Yr spend share

6. Fashion, 24 week ending to 29 March 2026. M&S buyer Yr/Yr numbers

7. Fashion, Offline Menswear, 52 week ending to 29 March 2026. M&S Yr/Yr spend share

8. FMCG, 52 week ending 22 March 2026. M&S Yr/Yr buyers

Fraser Ramzan: +44 (0) 7554 227 758

Helen Lee: +44 (0) 7880 294 990

Corporate Press Office: +44 (0) 20 8718 1919

Investor & Analyst presentation and Q&A:

A pre-recorded investor and analyst presentation will be available on the Marks and Spencer Group plc website here from 7:30am on 20 May 2026

Stuart Machin and Alison Dolan will host a Q&A session at 9:30am on 20 May 2026.

For the quickest joining experience, please register prior to attending the call here. After registering, you will be given unique dial in details to join the call.

Alternatively, you can use the below details to join the call but please join 5-10 minutes before the start time in order to register your details with the operator.

Dial in: +44 (0) 33 0551 0200

Passcode: Quote M&S FY Analyst when prompted by the operator

Replay: A recording will be available after the call here

Statements made in this announcement that look forward in time or that express management's beliefs, expectations or estimates regarding future occurrences and prospects are "forward-looking statements" within the meaning of the United States federal securities laws. These forward-looking statements reflect Marks & Spencer's current expectations concerning future events and actual results may differ materially from current expectations or historical results. Any forward-looking statements are subject to various risks and uncertainties, including, but not limited to, failure by Marks & Spencer to predict accurately customer preferences; decline in the demand for products offered by Marks & Spencer; competitive influences; changes in levels of store traffic or consumer spending habits; effectiveness of Marks & Spencer's brand awareness and marketing programmes; general economic conditions including, but not limited to, a downturn in the retail or financial services industries; acts of war or terrorism worldwide; work stoppages, slowdowns or strikes; and changes in financial and equity markets. For further information regarding risks to Marks & Spencer's business, please consult the risk management section of the 2026 Annual Report (pages 41-47).

The forward-looking statements contained in this document speak only as of the date of this announcement, and Marks & Spencer does not undertake to update any forward-looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

1 Results of the Channel Islands have been reclassified from the International segment to be reported within Food and Fashion, Home & Beauty.

2 Results for the period include the first-time consolidation of Ocado Retail Limited, with the prior year including M&S' group share of result in associate.

3 M&S Group adjusted profit before tax excludes the profit or loss attributable to shares we do not own in subsidiary companies and adjusting items.

4 Surrender payments have been split out from cash lease payments and are now within free cash flow but no longer within free cash flow from operations.

5 Net debt now includes the M&S Travel Money Revolving Credit Facility agreement with Eurochange (£9.8m).

There are a number of non-GAAP measures and alternative profit measures ("APMs") discussed within this announcement, and a glossary and reconciliation to statutory measures is provided at the end of this report. Adjusted results are consistent with how business performance is measured internally and presented to aid comparability of performance. Refer to the adjusting items table below for further details

Statutory revenue in the period was £17,273.6m, an increase of 25.0% versus 2024/25, driven by the consolidation of Ocado Retail Limited which generated sales of £3,193.4m in the period. Group sales were £17,371.5m, an increase of 24.8% versus 2024/25, excluding Ocado Retail, Group sales grew 1.9% versus 2024/25.

Food sales were up 7.0%, this was offset by a decline in Fashion, Home & Beauty sales of 7.7% and International sales of 7.2%. Results of the Channel Islands have been reclassified from the International segment to be reported within Food and Fashion, Home & Beauty.

M&S Group adjusted profit before tax was £671.4m compared with £881.1m in the prior year. This is reported following the deduction of non-controlling interests before adjusting items and tax for Ocado Retail Limited and the group's business in India in the current year and Greece and India in the prior year.

Adjusting items were a net charge of £292.1m, compared with £363.7m in the prior year. The net charge in the period includes £131.3m of costs directly related to the cyber incident, which are further broken down in notes 1 and 3 in the financial information.

As a result, the Group generated a statutory profit before tax of £364.6m, compared with a profit of £511.8m in the prior year.

Adjusted basic EPS was 23.8p, down 25.4% on 2024/25 reflecting lower adjusted profit in the period. Basic EPS was 12.7p, down 13.0% on 2024/25, reflecting reduced profit in the period.

A final dividend of 3.0p per share has been declared, payable on 10 July 2026. This results in a full-year dividend of

4.2p per share, an increase of 16.7%.

Note, 2026/27 will be a 53-week year. M&S anticipates reporting 52-week comparable results alongside the statutory outturn for 53 weeks to 3 April 2027.

For full details of the Group's related policy and adjusting items, read more in notes 1 and 3 to the financial information.

Food sales increased 7.0% with UK volume growth of 3.3%, largely driven by increased shopper numbersh, supported by investment in value, quality upgrades, innovation and new store openings.

1Sales growth includes direct sales to Ocado Retail of Food of £57.0m in the prior year which were eliminated on consolidation in 2025/26

Sales growth in the first half benefited from Easter timing, although overall growth was impacted by the incident. In the second half, transactions were up 5.0% on last year and baskets over £30 grew by 9.4%.

Operating profit before adjusting items was £444.5m compared with £491.8m in 2024/25, with an adjusted operating margin of 4.6% versus 5.4% last year. Profitability was impacted by the incident in the first half but showed good progress in the second half.

Gross margin decreased by 1.3% pts, driven by increased markdown and waste and the inclusion of £24.5m Extended Producer Responsibility (EPR) charges for the first time during the first half. This was partly offset by a stronger profit performance year-on-year in the second half.

Operating costs increased 4.9%, which was less than sales growth of 7.0%. Operating costs in the period were driven by:

• Retail costs, from increased colleague pay, National Insurance contributions (NI), volume growth, and new store openings, partly offset by cost savings.

• Logistics, from colleague pay, NI and volume growth, partly offset by cost savings.

• Central costs reduced, reflecting lower incentive accruals and reduced marketing spend.

  Operating profit margin before adjusting items	%
  FY 2024/25	5.4
  Gross margin	(1.3)
  Retail costs	(0.2)
  Logistics costs	(0.1)
  Digital & Technology	0.1
  Central costs	0.7
  FY 2025/26	4.6

  Fashion, Home & Beauty

  Fashion, Home & Beauty sales decreased 7.7% driven by the incident impacts in H1, followed by an improving trend in H2. Sales were constrained in both channels owing to reduced availability following the incident.

  Change vs 24/25 %1	Q1	Q2	Q3	Q4	FY
  Total sales	(20.8)	(12.3)	(2.6)	4.3	(7.7)
  Like-for-like sales	(20.2)	(12.1)	(2.7)	4.3	(7.5)
  Store sales	(3.5)	(3.2)	(4.4)	3.3	(2.3)
  Online sales	(58.5)	(29.7)	1.0	6.1	(18.4)
  Fashion, Home & Beauty statutory revenue	762.8	904.6	1,239.7	919.0	3,826.1

  1Sales growth includes direct sales to Ocado Retail of £5.2m in Fashion, Home & Beauty in the prior year which were eliminated on consolidation in 2025/26

  Store sales decreased by 2.3% to £2,749.8m, returning to growth in the final quarter.

  Online sales decreased by 18.4% to £1,165.7m, reflecting the pause in online orders followed by a gradual recovery over the summer. During the second half website traffic and transactions increased versus last year.

  52 weeks ended	H1 £m	H2 £m	28 Mar 26 £m	29 Mar 25 Restated £m	Change vs 2024/25 %
  Sales	1,697.6	2,217.9	3,915.5	4,243.4	(7.7%)
  Operating profit before adjusting items	46.1	167.3	213.4	478.0	(55.4%)
  Adjusted operating margin	2.7%	7.5%	5.5%	11.3%	(5.8% pts)

  Operating profit before adjusting items was £213.4m compared with £478.0m in 2024/25, with an adjusted operating margin of 5.5% compared with 11.3% last year.

  Gross margin decreased by 2.7% pts driven by increased stock management and markdown related costs, which were weighted towards H2.

  Operating costs decreased 1.5% compared with a sales decline of 7.7%. This resulted in higher operating costs as a percent of sales. Operating costs were driven by:

• Retail costs, from higher colleague pay, NI and maintenance, which were partly offset by cost savings.

• Logistics costs were down year-on-year, reflecting lower volumes, the exit of bulky furniture and cost savings which more than offset the incident-related warehouse costs.

• Digital & Technology, from systems development including planning platform and re-launch of Sparks.

• Central costs reduced, largely due to lower incentive accruals, partly offset by increased performance marketing spend.

  Operating profit margin before adjusting items	%
  FY 2024/25	11.3
  Gross margin	(2.7)
  Retail costs	(2.1)
  Logistics costs	(0.7)
  Digital & Technology	(0.7)
  Central costs	0.4
  FY 2025/26	5.5

  Within these results, store margin was 10.0% and online margin was (5.2%).

  International

  International sales decreased by 7.2% (down 5.7% at constant currency), with an improving trend in the second half. Sales declined due to lower franchise shipments, a pause to online trading in H1, and selected store closures. This was partially offset by growth in wholesale, supported by the launch of three new partnerships, and in marketplaces.

  Operating profit before adjusting items increased 8.9% year-on-year driven by cost management, including reduced marketing spend and store closures, which more than offset the impact of the decline in franchise and online sales.

  52 weeks ended	28 Mar 26 £m	29 Mar 25 Restated1 £m	Change vs 2024/25 %	Change vs 2024/25 CC2 %
  Sales, split:	543.3	585.2	(7.2%)	(5.7%)
  Franchise3	244.4	271.5	(10.0%)
  Owned3	228.8	251.6	(9.1%)
  Online & Marketplaces	44.6	50.0	(10.8%)
  Wholesale	25.5	12.1	110.7%
  Operating profit before adjusting items	39.1	35.9	8.9%	8.5%
  Adjusted operating margin	7.2%	6.1%	1.1% pts	0.9% pts

  1 Sales and profit in prior year restated to reflect change in reporting of Channel Islands to Food and Fashion, Home & Beauty

  2 Constant currency

  3 Online sales for franchise and owned business are included within their respective channels

  Ocado Retail

  Ocado Retail (ORL) is a joint venture, 50% owned by M&S and 50% by Ocado Group. The change of consolidation of the results of ORL from Ocado Group to M&S, was effective from 6 April 2025. Results for the current period therefore relate to the 51-weeks ended 29 March 2026, whereas the joint venture was accounted for via the equity method in the prior period. To aid understanding, operational metrics and results for the current and prior period are therefore also presented for the 52-weeks and comparable period below.

  Sales for the 52-weeks increased 15.0%, driven by 12.0% growth in average orders per week. This was driven by more effective customer acquisition and retention, and increased frequency of shop. Average selling price increased by 2.2% as the business remained focused on value for customers, inflating behind the market.

  Key performance indicators

  Ocado.com1 (52 weeks ended)	29 Mar 26 £m	30 Mar 25 £m	Change vs 2024/25 %
  Active customer base (000s)	1,302	1,177	10.6%
  Average orders per week (000s)	521	465	12.0%
  Average basket value (£)	124.64	122.35	1.9%
  Average selling price (£)	2.83	2.77	2.2%
  Average basket size (eaches)	44.01	44.22	(0.5%)

  1 Ocado.com represents the Ocado.com business unit and excludes Ocado Zoom figures

  £m	52 weeks ended 29 Mar 26	52 weeks ended 30 Mar 25	Change vs 2024/25 £m	51 weeks ended 29 Mar 26
  Sales2	3,252.2	2,827.0	425.2	3,193.4
  Operating profit before adjusting items	14.7	(20.4)	35.1	15.2
  Adjusted operating profit margin	0.5%	(0.7%)	1.2% pts	0.5%

  1 Ocado Retail trading week runs Monday to Sunday (versus M&S trading week Sunday to Saturday)

  2 Sales represents the Ocado Retail reported Revenue

  Operating profit before adjusting items was £14.7m compared with a loss of £20.4m in 2024/25.

  Gross margin was broadly flat as Ocado Retail continues to limit the pass through of cost inflation to customers.

  Operating costs increased 10.7%, which was less than sales growth of 15.0%. Operating costs in the period were driven by:

• Fulfilment and delivery costs, which benefited from improved CFC efficiency and productivity, partly offset by higher delivery costs.

• Support costs increased driven by platform migration.

• Fees payable to Ocado Group reduced as a percent of sales.

M&S Financial Services generated a profit before adjusting items of £6.2m, compared with £7.5m in the prior year. Profits were down on last year reflecting the impact of the incident on the travel money business, alongside investment to integrate the M&S credit card into the new Sparks loyalty app.

Details of the Financial Services transformation and insurance mis-selling provisions can be found in adjusting items.

1 In the prior period Interest payable included £4.6m of other finance costs which has now been split out in the table above.

2 Ocado lease liabilities were included in Group consolidation from April 2025 as M&S's share rights give accounting control from this date. The opening balance on consolidation was £333.8m with the increase to £481.7m at year end primarily being due to a new lease liability in Erith of approximately £140m.

Net finance cost before adjusting items increased from £109.0m to £161.7m. This was driven by the effects of the consolidation of Ocado Retail which resulted in increased interest payable on lease liabilities and increased other finance costs, reflecting interest payable to Ocado Group on shareholder loans. Interest receivable decreased driven by lower effective interest rates versus last year.

Adjusting items within net finance costs increased primarily due to the movement of the IAS 19 pension surplus to a deficit position at the prior year end.

M&S Group adjusted profit before tax was £671.4m, down 23.8% on 2024/25. The profit decrease was primarily due to the decline in Food, and Fashion, Home & Beauty profit due to the trading impact of the incident, partly offset by insurance income received in the first half.

Profit before tax was £364.6m (2024/25: £511.8m) This includes a net charge for adjusting items of £292.1m (2024/25: charge of £363.7m).

The Group makes certain adjustments to statutory profit measures to derive alternative performance measures (APMs) that provide stakeholders with additional helpful information and aid comparability of the performance of the business. For further detail on these (charges)/gains and the Group's policy for adjusting items, please see notes 1 and 3 to the financial information. These (charges)/gains are reported as adjusting items on the basis that they are significant in quantum in current or future years and aid comparability from one period to the next.

Net finance costs incurred in relation to Gist Limited deferred

and contingent consideration

Net finance costs relating to amortisation and fair value

1 Relates to 50% non-controlling interest share of fair value adjustments acquired on consolidation of Ocado Retail Limited (£12.1m) and 49% non-controlling interest share of India store closures £0.5m.

Adjusting items include direct cyber incident related costs as well as the costs relating to several strategic programmes and other items. There was a net charge of £292.1m, down from £363.7m in the prior year. This includes:

A charge of £131.3m in relation to the incident. £109.3m of these costs are related to immediate incident systems response and recovery. Remaining charges incurred relate to third party corporate costs predominantly for specialist legal and professional services support.

A charge of £84.1m in relation to store estate rotation plans. The charge primarily reflects the latest view of store closure plans and latest assumptions for estimated store closure costs, as well as charges relating to the impairment of buildings and fixtures and fittings, and depreciation as a result of shortening the useful economic life of stores based on the most recent approved exit routes.

A credit of £10.6m in relation to the International reset. This largely reflects the release of a provision for an onerous lease for a distribution centre in Europe. The provision is no longer required, as a new contract has been agreed for the site.

A net charge of £33.1m in relation to M&S Financial Services transformation and insurance mis-selling provisions. The higher charge this period is largely due to the exclusivity buy out of General Insurance from HSBC.

A net charge of £26.9m in relation to amortisation and fair value adjustments relating to the investment in Ocado Retail Limited. This included a one-off fair value adjustment arising on consolidation of £17.7m. In addition, amortisation of fair value adjustments on acquired intangibles and assets resulted in a charge of

£9.2m, with the portion relating to the non-controlling interest recognised separately.

Net finance costs of £10.4m, largely consisting of £3.8m relating to Gist acquisition discount unwind, and £5.0m of net pension finance charge.

For further details on adjusting items see note 3 to the financial information.

The effective tax rate on profit before tax and adjusting items was 27.5% (2024/25: 26.7%). This is above the UK statutory rate, primarily due to the impact of non-deductible Ocado losses.

The effective tax rate on statutory profit before tax was 35.2% (2024/25: 43.0%). This is higher than the effective tax rate on profit before adjusting items, primarily due to the non-deductible nature of adjusting items such as impairments.

Total taxation charge for the period was £128.4m.

Prior year deferred tax liabilities have been restated owing to the recalculation of the Group's deferred tax calculation in relation to historical charges for IFRS16 leases. In line with IAS 8, the Group has restated balances as at 29 March 2025 and 30 March 2024, the impact on the financial results as a 29 March 2025 was a £119.5m increase in deferred tax liabilities. There is no impact on the cash flows, reported pre or post tax profits or tax paid in any of the previous years.

Basic earnings per share was 12.7p (2024/25: 14.6p), due to lower profit in the period. Adjusted basic earnings per share was 23.8p (2024/25: 31.9p) due to lower adjusted profit and an increased effective tax rate on profit before adjusting items.

The weighted average number of ordinary shares in issue during the period was 2,041.4m (2024/25: 2,021.9m), with the weighted average number of diluted ordinary shares 2,115.3m (2024/25: 2,110.7m).

1 Surrender payments have been split out from cash lease payments and are now within free cash flow but no longer within free cash flow from operations.

2 Net debt now includes the M&S Travel Money Revolving Credit Facility agreement with Eurochange.

Free cash from operations was an inflow of £131.3m, which was £312.0m adverse to last year. This was driven primarily by lower operating profit before adjusting items, increased working capital outflow, increased capital expenditure and higher adjusting items in cash flow. This was partially offset by reduced taxation.

The increased working capital outflow reflected higher receivables from growth in Food sales, new wholesale partnerships in International, and incentive accruals in the prior year. Fashion, Home & Beauty core and continuity stock balances were also higher at year end.

Adjusting items in cash outflow increased by £77.7m. This was driven by £121.0m of incident related costs, partially offset by the cash impact of the change in arrangements for financial services in the prior year.

The consolidation of Ocado Retail resulted in a £76.0m increase in depreciation and £78.9m increase in cash lease payments compared with the prior year.

Contributions to the defined benefit pension fund in free cash flow re-commenced in the year.

Acquisitions, investments, and divestments are driven by £110.9m of deferred consideration for the acquisition of Gist.

The Group had closing net funds excluding lease liabilities of £338.2m at the end of the period. The consolidation of Ocado Retail resulted in additional lease commitments and loans from third parties, alongside new lease commitments from increased store activity. Group net debt therefore increased to £2,411.8m.

M&S capital expenditure before disposals increased from £578.2m to £657.1m reflecting increased investment in new stores and supply chain, offset by reduced spend on digital and technology and property maintenance.

Property capital expenditure focused on Food and includes £209.9m of investment in new stores and extensions,

£111.2m in renewals, and £40.3m of other property investments, including energy efficiency and store environment improvements.

Supply chain expenditure, also largely focused on Food, reflects initial costs associated with the Daventry National Distribution Centre, investment in new Food capacity at the Avonmouth Regional Distribution Centre, and Fashion, Home & Beauty online fulfilment capabilities.

Digital and Technology focused on investment in the new Sparks loyalty programme, Fashion, Home & Beauty planning platform and online capabilities, and store technology.

Ocado Retail expenditure focused on investment in a new spoke site in Nottingham as well as maintenance of existing distribution facilities.

Group net debt increased £632.0m since last year primarily driven by the increase in lease liabilities due to the consolidation of Ocado Retail.

1 Cash and cash equivalents represents cash held on deposit for under 90 days. Other financial assets include funds on deposit for longer than 90 days.

2 Net funds now includes the M&S Travel Money Revolving Credit Facility agreement with Eurochange.

Medium-term notes include three bonds, with maturities out to 2037, and the associated accrued interest. During the period, the June 2025 bond and May 2026 bond were repaid. In addition, part of the July 2027 bond was repaid. These repayments were partially offset by the issuance of a £300m bond, maturing in August 2032. The USD

$300m 2037 bond is valued by reference to the embedded exchange rate in the associated cross currency swaps. The full breakdown of maturities is as follows:

July 2027, GBP

August 2032, GBP

December 2037, USD

Unamortised bond costs and effects of fair value hedges Interest and FX revaluation

56.9

300.0

252.9

(38.6)

8.2

1 Liability-weighted average lease length to break, adjusted to exclude nine long leases

2 Ocado lease liabilities were included in Group consolidation from April 2025 as M&S's share rights give accounting control from this date. The opening balance on consolidation was £333.8m with the increase to £481.7m at FY primarily being due to a new lease liability of approximately £140m.

Full line store lease liabilities include £83m relating to stores identified as part of the store estate strategic programme.

Food store lease liabilities include £34m relating to stores identified as part of the store estate strategic programme.

At 28 March 2026, the IAS 19 net retirement benefit deficit was £79.2m (2024/25: £122.7m deficit). There has been a decrease in the deficit since the start of the year largely driven by the payment from the Scottish Limited Partnership of £45.0m.

The most recent actuarial valuation of the UK DB Pension Scheme was carried out as at 31 March 2024 and showed a funding surplus of £288m.

The IAS 19 net retirement deficit differs from the actuarial valuation position for a number of reasons, including timing and assumptions. The most notable difference is the exclusion of the value of the Scottish Limited Partnership from the reported IAS 19 net retirement deficit, which is included in the actuarial valuation position.

As noted at the start of the year, the Company and Trustee have confirmed, in line with the current funding arrangement, that no further contributions will be required to fund past service because of this valuation, other than those contractually committed under the Marks and Spencer Scottish Limited Partnership arrangements.

For further information on the Marks and Spencer Scottish Limited Partnership arrangements see note 9 to the financial information.

At 28 March 2026, the Group had liquidity of £1,872.1m (2024/25: £1,739.5m), comprising cash and cash equivalents of £997.2m (2024/25: £864.5m), an undrawn committed syndicated bank revolving credit facility of £850.0m (set to mature in December 2030), and undrawn uncommitted facilities amounting to £25.0m.

A final dividend of 3.0p per share has been declared. This will be payable on 10 July 2026 to shareholders on the register of members as at close of business on 5 June 2026. Bringing full year dividend to 4.2p up 16.7% versus last year.

Net assets were £3,222.9m at the period end (2024/25 restated: £2,831.9m). The increase in intangibles and property, plant and equipment from the consolidation of Ocado Retail, as well as higher inventories, cash, and increased receivables, resulted in an overall increase in net assets of £391.0m (13.8%) since the start of the year.

Consolidated income statement

1 On 6 April 2025, in line with expectations, the Group obtained control of Ocado Retail Limited; therefore, it is no longer treated as an associate, with the Group now consolidating the results of Ocado Retail Limited.

2 Non-controlling interests include the minority share of results in Ocado Retail Limited and other joint ventures in India and the UK.

3 Refer to the Glossary for a complete definition of M&S Group adjusted profit before tax.

Consolidated statement of comprehensive income

Consolidated statement of financial position

As at As at As at 28 March 2026 29 March 2025 30 March 2024

(Restated) (Restated)

Deferred tax and retained earnings have been restated in the comparative information. See note 1 for further details.

Consolidated statement of changes in equity

income

income

inventories

options

1 The 'Other reserve' was originally created as part of the capital restructuring that took place in 2002. It represents the difference between the nominal value of the shares issued prior to the capital reduction by the Company (being the carrying value of the investment in Marks and Spencer plc) and the share capital, share premium and capital redemption reserve of Marks and Spencer plc at the date of the transaction.

Consolidated statement of cash flows

52 weeks ended

52 weeks ended

1Includes £68.2m (last year: £nil) relating to the consolidation of Ocado Retail Limited.

2Includes interest paid on lease liabilities of £136.0m (last year: £103.4m).

3Includes £105.5m of maturing 2025 notes, £193m of outstanding 2027 notes repurchased in February 2026 and £109m of outstanding 2026 notes repurchased in March 2026, resulting in a gain of £1.1m recognised within 'interest payable on Medium-Term Notes' in net finance costs.

1. ACCOUNTING POLICIES

   General information

   The financial information set out in the announcement does not constitute the Company's statutory accounts for the years ended 28 March 2026 or 29 March 2025. The financial information for the year ended 29 March 2025 is derived from the statutory accounts for that year which have been delivered to the Registrar of Companies. The auditors reported on those accounts: their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under s498(2) or (3) of the Companies Act 2006. The statutory accounts for the year ended 28 March 2026 will be delivered to the Registrar of Companies following the Company's annual general meeting.

   Basis of preparation

   While the financial information included in this press release has been prepared in accordance with the recognition and measurement criteria of UK-adopted International Accounting Standards, this announcement does not itself contain sufficient information to comply with these standards. The financial information has been prepared using accounting policies and methods of computation consistent with those applied in the financial statements for the year ended 29 March 2025, with the exception of the change in accounting policy and new accounting standards adopted in the year set out below. The Company's full financial statements will be prepared in compliance with UK adopted International Accounting Standards.

   Going concern basis

   The financial statements have been prepared on a going concern basis. In adopting the going concern basis, the Board has considered the business activities, the financial position of the Group, its cash flows, liquidity position and borrowing facilities, the Group's financial risk management objectives and exposures to liquidity and other financial risks as set out in note 12 and the principal risks and uncertainties.

   The Group continues to maintain a robust financial position providing it with sufficient access to liquidity, through a combination of cash and committed facilities, to meet its needs in the short and medium-term. At 28 March 2026, the Group had liquidity of £1,872.2m (last year: £1,739.5m), comprising cash and cash equivalents of £997.2m, an undrawn committed syndicated bank revolving credit facility ("RCF") of £850.0m (set to mature in December 2030), and undrawn uncommitted facilities amounting to £25.0m.

   The RCF contains a financial covenant, being the ratio of earnings before interest, tax, depreciation and amortisation, to net interest and depreciation on right-of-use assets under IFRS 16. The covenant is measured biannually.

   In adopting the going concern basis of preparation, the Board has assessed the Group's cash flow forecasts which incorporate a latest estimate of the ongoing impact of current market conditions on the Group (including the impact of the current Middle East conflict) and include a number of assumptions including sales growth and customer behaviour. While trading continues to be strong, in forming their outlook on the future financial performance, the Board considered a variety of downsides that the Group might experience, such as a sustained economic recession and an inability for the Group to execute the transformation plan.

   Under these latest forecasts, the Group is able to operate without the need to draw on its available facilities and without taking any supplementary mitigating actions, such as reducing capital expenditure and other discretionary spend. The forecast cash flows also indicate that the Group will comply with all relevant banking covenants during the forecast period, being at least 12 months from the approval of the financial statements.

   The Board has modelled a severe, but plausible, downside scenario. This downside scenario assumes that:

   • There will be a period of economic recession in 2026/27, resulting in a reduction in sales growth of 3.0 - 5.0% across all three business units compared to the budget and three-year plan.

   • A delay on transformation benefits results in incremental sales expected from the transformation declining by 7.5%, 15% and 30% respectively across the three-year period.

   • Ocado Retail Limited experiences limited customer demand, with a 5.0% reduction in volume growth each year across the three-year period compared to the budget and three-year plan.

     Even under this severe but plausible downside scenario, the Group would continue to have sufficient liquidity and headroom on its existing facilities and against the RCF financial covenant for the forecast period. In addition, should such a scenario arise, there are a range of mitigating actions that could be taken to reduce the impact. Given current trading and expectations for the business, the Board considers that this downside scenario reflects a plausible, but remote, outcome for the Group.

     In addition, reverse stress testing has been applied to the model to determine the decline in sales that the Group could absorb before exhausting the Group's total liquidity. Such a scenario, and the sequence of events which could lead to it, is considered to be extremely remote.

     As a result, the Board expects the Group to have adequate resources to continue in operation, meet its liabilities as they fall due, retain sufficient available cash and not breach the covenant under the revolving credit facility for the foreseeable future, being a period of at least 12 months from the approval of the financial statements. The Board therefore considers it appropriate for the Group to adopt the going concern basis in preparing its financial statements.

     New accounting standards adopted by the Group

     The Group has applied the following new amendment to the accounting standard for the first time for the annual reporting period commencing 30 March 2025:

   • Amendment to IAS 21: Lack of Exchangeability.

     The adoption of the new amendment to the accounting standard listed above has not led to any changes to the Group's accounting policies or had any other material impact on the financial position or performance of the Group.

     New accounting standards in issue but not yet effective

     New standards and interpretations that are in issue but not yet effective are listed below:

   • Amendments to IFRS 9 and IFRS 7: Classification and Measurement of Financial Instruments.

   • Amendments to IFRS 9 and IFRS 7: Contracts Referencing Nature- Dependent Electricity.

   • IFRS 18: Presentation and Disclosure in Financial Statements.

   • IFRS 19: Subsidiaries without Public Accountability.

     With the exception of IFRS 18, the adoption of the above standards and interpretations is not expected to lead to any changes to the Group's accounting policies nor have any other material impact on the financial position or performance of the Group.

     IFRS 18 was issued in April 2024 and is effective for periods beginning on or after 1 January 2027. The Group will apply the standard from its mandatory effective date and does not intend to adopt early. IFRS 18 requires retrospective application. Accordingly, comparative information for the financial year ended 2nd April 2027 will be restated in in the Group's 2027/28 financial statements. The standard will replace IAS 1 Presentation of Financial Statements and although it will not change how items are recognised and measured, the standard brings a focus on the income statement and reporting of financial performance. Specifically classifying income and expenses into three new defined categories - 'operating', 'investing' and 'financing' and two new subtotals 'operating profit and loss' and 'profit or loss before financing and income tax', introducing disclosures of management defined performance measures (MPMs) and enhancing general requirements on aggregation and disaggregation. The impact of the standard on the Group is currently being assessed and it is not yet practicable to quantify the effect of IFRS 18 on these consolidated financial statements, however there is no impact on presentation for the Group in the current year given the effective date - this will be applicable for the Group's 2027/28 Annual Report.

     Prior Year Restatement

     An error has been identified within the Group's deferred tax calculations in relation to historical changes for IFRS16 - Leases. In line with IAS8, the Group has restated balances as at 29 March 2025 and 30 March 2024. Specifically, the impact on the financial results as at 29 March 2025 was a £119.5m increase in deferred tax liabilities recognised in relation to IFRS16 - Leases. There is no impact on cash flows (or cash flow statements), reported pre or post tax profits or tax paid in any of the previous years. The financial impact of the errors identified is as follows:

     As at 29 March 2025 As at 30 March 2024

     	Reported	Adjusted	Restated	Reported	Adjusted	Restated
     	£m	£m	£m	£m	£m	£m
     Deferred tax liability	199.4	119.5	318.9	205.8	119.5	325.3
     Retained earnings	5,888.5	(119.5)	5,769.0	5,789.6	(119.5)	5,670.1

     Alternative performance measures

     In reporting financial information, the Group presents alternative performance measures ('APMs'), which are not defined or specified under the requirements of IFRS.

     The Group believes that these APMs, which are not considered to be a substitute for, or superior to, IFRS measures, provide stakeholders with additional helpful information on the performance of the business. These APMs are consistent with how the business performance is planned and reported within the internal management reporting to the Board and Executive Committee. Some of these measures are also used for the purpose of setting remuneration targets.

     The key APMs that the Group uses include: sales; like-for-like sales growth; adjusted operating profit; adjusted operating margin; M&S Group adjusted profit before tax; adjusted basic earnings per share; net debt; net debt excluding lease liabilities; free cash flow; free cash flow from operations; capital expenditure; return on capital employed; and adjusted non-controlling interest. Each of these APMs, and others used by the Group, are set out in the Glossary, including explanations of how they are calculated and how they can be reconciled to a statutory measure where relevant.

     The Group reports some financial measures, primarily International sales, on both a reported and constant currency basis. The constant currency basis, which is an APM, retranslates the previous year revenues at the average actual periodic exchange rates used in the current financial year. This measure is presented as a means of eliminating the effects of exchange rate fluctuations on the year-on-year reported results.

     The Group makes certain adjustments to the statutory profit measures in order to derive many of these APMs. The Group's policy is to exclude items that are considered significant in nature and/or quantum over the total expected life of the programme or are consistent with items that were treated as adjusting in prior periods. The Group's definition of adjusting items is consistent with prior periods. Adjusted results are consistent with how business performance is measured internally and presented to aid comparability of performance. On this basis, the following items were included within adjusting items for the 52-week period ended 28 March 2026:

   • Net charges associated with the strategic programme in relation to the review of the store estate.

   • Significant restructuring costs and other associated costs arising from strategy or operational changes that are not considered by the Group to be part of the normal operating costs of the business.

   • Impairment charges and provisions that are considered to be significant in nature and/or value to the trading performance of the business.

   • Charges and reversals of previous impairments arising from the write-off of assets and other property charges that are significant in nature and/or value. Impairment charges are recognised in adjusted operating profit where they relate to stores not previously impaired or do not otherwise meet the Group's adjusting items policy.

   • Adjustments to income from M&S Bank due to a provision recognised by M&S Bank for the cost of providing redress to customers in respect of possible mis-selling of M&S Bank financial products.

   • Amortisation and fair value adjustments relating to Ocado Retail Limited.

   • Net finance costs incurred in relation to Gist Limited deferred and contingent consideration.

   • Share of net charges associated with Ocado Retail Limited's UK network capacity review.

   • Net pension finance costs/income in relation to closed scheme not considered part of ongoing operating activities of the Group.

   • Significant charges relating to the renegotiation of the Group's Relationship Agreement with M&S Bank.

   • Significant charges in relation to the furniture simplification programme that are not considered to be day-to-day operational costs of the business, mainly relating to contractual obligations with suppliers.

   • Net income associated with a significant legal settlement that is not considered to be a normal income stream of the business.

   • (New) Significant costs in response to the recent cyber incident. Refer to note 3 for a summary of the adjusting items.

2. Segmental Information

   IFRS 8: Operating Segments requires operating segments to be identified on the basis of internal reporting on components of the Group that are regularly reviewed by the chief operating decision-maker to allocate resources to the segments and to assess their performance.

   The chief operating decision-maker has been identified as the Executive Committee. The Executive Committee reviews the Group's internal reporting in order to assess performance and allocate resources across each operating segment.

   During the period a review of the Group's operating segments was performed to ensure the operating segments best reflect the current day-to-day operations and way the business is managed. As a result of the review, the Channel Islands have been removed from the International segment and split between the Fashion, Home & Beauty and Food segments. Additionally, sales relating to the US chain Target have been removed from the Food segment and allocated to the International segment. Reportable segment results below have been updated to reflect this change.

   The Group's reportable operating segments have therefore been identified as follows:

   • Fashion, Home & Beauty - comprises the retailing of womenswear, menswear, lingerie, kidswear, beauty and home products through UK, ROI and Channel Islands retail stores and online.

   • Food - includes the results of the UK, ROI and Channel Islands retail food business, UK Food franchise operations and UK supply chain services, with the following main categories: Meat, Fish, Protein, Deli and Dairy; Produce & Floral; Meals, Frozen and 'food on the move'; Core Basket; Bakery, Impulse & Events; Beers, Wines & Spirits; and Hospitality.

   • International - consists of Marks and Spencer owned businesses in Europe (excluding Ireland and the Channel Islands) and Asia and the international and wholesale franchise operations.

   • Ocado - includes the results of the Ocado Retail Limited business.

     Other business activities and operating segments, including M&S Bank, are combined and presented in 'All other segments'. Finance income and costs and other operating income are not allocated to segments as each is managed on a centralised basis.

     The Executive Committee assesses the performance of the operating segments based on a measure of Group adjusted operating profit before adjusting items. This measurement basis excludes the effects of adjusting items from the operating segments.

     The following is an analysis of the Group's revenue and results by reportable segment:

     	Fashion, Home & Beauty £m	Food Int £m	ernational £m	Ocado s £m	All other egments £m	Group £m	Fashion, Home & Beauty4 £m	Food4, 5 Int £m	ernational4, 5 £m	Ocado seg £m	All other ments £m	Group £m
     Sales1	3,915.5	9,719.3	543.3	3,193.4	-	17,371.5	4,243.4	9,085.7	585.2	-	-	13,914.3
     Revenue	3,826.1	9,710.8	543.3	3,193.4	-	17,273.6	4,145.9	9,085.7	585.2	-	-	13,816.8
     Insurance income2						100.0						-
     Group adjusted operating 213.4		444.5	39.1	15.2	6.2	818.4	478.0	491.8	35.9	(28.7)	7.5	984.5
     Finance income before adjusting items						45.0						60.6
     Finance costs before adjusting items						(206.7)						(169.6)
     Less: Adjusted non-controlling interests						14.7						5.6
     M&S Group adjusted	213.4	444.5	39.1	15.2	6.2	671.4	478.0	491.8	35.9	(28.7)	7.5	881.1

     52 weeks ended 28 March 2026 52 weeks ended 29 March 2025 (restated4,5)

     profit/(loss)3

     profit/(loss) before tax

     Adjusting items (292.1) (363.7)

     Adjusted non-controlling interests

     (14.7) (5.6)

     Profit/(loss) before tax 213.4 444.5 39.1 15.2 6.2 364.6 478.0 491.8 35.9 (28.7) 7.5 511.8

     1 Sales is revenue stated prior to adjustments for Fashion, Home & Beauty brand consignment sales of £89.4m (last year: £97.5m) and Food consignment sales of £8.5m (last year: £nil).

     2 Insurance income in respect of the cyber incident is recognised within other operating income and is not allocated to segments as it is managed on a centralised basis.

     3 Group adjusted operating profit/(loss) is stated as gross profit less operating costs prior to adjusting items and non-controlling interest. At reportable segment level costs are allocated where directly attributable or based on an appropriate cost driver for the cost.

     4 Fashion, Home & Beauty, Food and International segments have been restated to move revenue related to sales in the Channel Islands from International to Fashion, Home & Beauty and Food

     5 Food and International segments have been restated to move revenue related to sales in the US chain Target from Food to International

     Other segmental information

     52 weeks ended 28 March 2026 52 weeks ended 29 March 2025

     Fashion, Home & Beauty

     Food International Ocado

     All other Group segments

     Fashion, Home & Beauty

     Food International Ocado

     All other Group segments

     £m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
     Additions to property, plant and equipment, and intangible 229.7	449.1	4.9	12.7	-	696.5	266.7	315.0	7.4	-	-	589.1
     right-of-use assets)
     Depreciation and (279.2)	(312.2)	(40.5)	(87.8)	-	(719.7)	(200.6)	(240.9)	(30.7)	-	-	(472.2)
     Impairment charges, impairment reversals and asset (5.4)	(16.8)	(2.1)	(5.7)	-	(30.0)	(106.3)	(34.6)	-	-	-	(140.9)

     assets (excluding goodwill and

     amortisation1,2

     disposals1

     1 These costs are allocated to a reportable segment where they are directly attributable. Where costs are not directly attributable, a proportional allocation is made to each segment based on an appropriate cost driver.

     2 Includes £0.2m (last year: £0.4m) depreciation and impairments on investment property.

     Segment assets and liabilities, including investments in associates and joint ventures, are not disclosed because they are not reported to or reviewed by the Executive Committee.

3. Adjusting items

   The total adjusting items reported for the 52-week period ended 28 March 2026 is a net charge of £292.1m (last year: net charge of £363.7m). The adjustments made to reported profit before tax to arrive at adjusted profit are:

   Notes	2026 £m	2025 £m
   Included in share of result of associate - Ocado Retail Limited
   Amortisation and fair value adjustments arising as part of the investment in Ocado Retail Limited	-	(12.9)
   Ocado Retail Limited - UK network capacity review	-	(2.0)
   	-	(14.9)
   Included in operating profit
   Strategic programmes - Store estate 11	(84.1)	(84.4)
   Strategic programmes - International reset	10.6	(20.6)
   Strategic programmes - Digital and Technology transformation	(4.1)	(10.2)
   Strategic programmes - Furniture simplification	-	11.1
   Costs associated with the cyber incident	(131.3)	-
   Store impairments, impairment reversals and other property charges 11	-	2.3
   Impairment of investment in Ocado Retail Limited	-	(248.5)
   Amortisation and fair value adjustments relating to Ocado Retail Limited	(26.0)	-
   Ocado Retail Limited - UK network capacity review	(2.8)	-
   M&S Bank transformation and insurance mis-selling provisions	(32.4)	(15.5)
   Legal settlement	-	20.5
   	(270.1)	(345.3)
   Included in net finance (costs)/income
   Pension net finance (costs)/income 8	(5.0)	4.1
   Net finance costs incurred in relation to Gist Limited deferred and contingent consideration	(3.8)	(7.6)
   Net finance costs relating to amortisation and fair value adjustments of Ocado Retail Limited	(0.9)	-
   Net finance costs relating to M&S Bank transformation and insurance mis-selling provisions	(0.7)	-
   	(10.4)	(3.5)
   M&S Group Adjusting items	(280.5)	(363.7)
   Adjusting items attributable to non-controlling interests included in operating profit1	(11.6)	-
   Adjustments to profit before tax	(292.1)	(363.7)

   1Relates to 50% non-controlling interest share of amortisation and certain fair value adjustments following the acquisition of Ocado Retail Limited (£12.1m) and 49% non-controlling interest share of India store impairment (£0.5m).

   Strategic programmes - Store estate (£84.1m)

   In November 2016, the Group announced a strategic programme to transform and rotate the store estate with the overall objective to improve our store estate to better meet our customers' needs. The Group has incurred charges of £1,131.1m in the 10 years up to March 2026 under this programme primarily relating to closure costs associated with stores identified as part of the strategic transformation plans.

   The Group has recognised a charge of £84.1m in the period in relation to those stores identified as part of the rotation plans. The charge primarily reflects the latest view of store closure plans and latest assumptions for estimated store closure costs, as well as charges relating to the impairment of buildings and fixtures and fittings, and depreciation as a result of shortening the useful economic life of stores based on the most recent approved exit routes.

   Further charges relating to the closure and rotation of the store estate are anticipated over the next five years as the programme progresses, the quantum of which is subject to change throughout the programme period as the Group gets greater certainty of circumstances that need to be in place to make closure financially viable. Future charges will not include Foodhall closures at a lease event where there is opportunity for a better location, as this is not in the scope of the programme.

   The cash flows used within the impairment models for the store estate programme are based on assumptions which are sources of estimation uncertainty, and small movements in these assumptions could lead to further impairments. Management has performed sensitivity analysis on the key assumptions across the store estate programme. A delay of 12 months in the probable date of each store exit would result in an increase in the impairment reversal recognised in the period by £10.8m, from £11.9m to £22.7m. A 5% reduction in planned sales in years 2 and 3 (where relevant) would result in an increase in the impairment charge of £0.7m. Neither a 250 basis point increase in the discount rate,

   a 25 basis point reduction in management gross margin during the period of trading, nor a 2% increase in the costs associated with exiting a store would result in a significant increase to the impairment charge, individually or in combination with the other reasonably possible scenarios considered.

   As at 28 March 2026, the total closure programme now consists of 215 stores, 145 of which have already closed. Further charges of c.£112m are estimated within the next five financial years, bringing anticipated total programme costs since 2016 to c.£1.2bn. In addition, where store exit routes in the next five years lead to the recognition of gains on exit, particularly those relating to asset management, these credits will also be recognised within adjusting items as part of the programme. The anticipated total programme costs to date do not include any costs that may arise in relation to a further c.19 stores currently under consideration for closure within the next five years. At this stage these c.19 stores remain commercially supportable and in the event of a decision to close the store, the exit routes are not yet certain.

   These costs are reported as adjusting items on the basis that they are significant in quantum and relate to a strategic initiative focused on reviewing our store estate and to aid comparability from one period to the next. The programme includes all stores within the programme to be closed by 2030/31, but charges in the year, and future charges, did not include Foodhall closures at a lease event where there is opportunity to secure a better location.

   Strategic programmes - International reset (£10.6m credit)

   In September 2024 the Group announced a reset of priorities for the International business. This included closures of two European distribution centres, exiting of legacy franchise business not aligned to the strategy and investing in technology relating to the strategy.

   During the year a credit of £10.6m has been recognised as a result of both one-off charges and gains that are not considered to be day-to-day operations of the business. These are primarily as a result of updated assumptions regarding contractual obligations in relation to the closure of the European distribution centres.

   These costs are adjusting items as they are significant to the International business and the business would not have incurred these costs without the strategy reset. No further costs are expected in 2026/27 as the International reset programme has concluded in the current year.

   Strategic programmes - Digital and Technology transformation (£4.1m)

   During 2024/25, to reduce costs and transform our business, the Group confirmed our desire to build the Digital and Technology team we need for the future, investing in our core foundations and business platforms. In 2025/26, we have been refreshing our transformation plans whilst continuing along similar ambitions, including a reset of key partnerships. We have been resetting our operating model under the new leadership team, bringing more capabilities in house and changing how we are structured and how we operate in service of the business. In total we are targeting to deliver £100m of structural cost savings over the next five years, with an element of these savings coming from the new operating model and resetting our partnerships.

   A charge of £4.1m has occurred in the year as part of our transformation programme, the majority of which related to third-party transformation costs. Further charges of c.£10m are expected in relation to this programme to 2028/29, taking total programme costs to c.£23m.

   These costs are considered to be adjusting items as the costs are part of the strategic programme, are significant in value and would distort the year-on-year profitability of the business.

   Costs associated with the cyber incident (£131.3m)

   As announced in April 2025, the Group was the subject of a sophisticated cyber incident. During the period the Group incurred £131.3m of material system recovery, risk management and specialist advisory costs as a direct result of the incident. £109.3m of these costs related to immediate incident systems response and recovery. Remaining charges incurred relate to third-party costs predominantly for specialist legal and professional services support.

   These costs are considered to be adjusting items as they relate to incident response and recovery activities that would not have been incurred without the cyber incident.

   Amortisation and fair value adjustments relating to Ocado Retail Limited (£26.9m)

   In April 2025, following the change in accounting control and the consolidation of Ocado Retail Limited, the Group recognised intangible assets of £292.0m representing the Ocado brand and acquired customer relationships (see note 10). Other fair value adjustments for property, plant and equipment of £54.4m were also recognised. These assets and fair value adjustments are being amortised and depreciated over their remaining useful economic lives of 10--40 years with the Group's share (50%) of charge £9.2m recognised in the period. The remaining charge of £17.7m relates to the recognition of the loss on settlement of the Group's pre-existing relationship.

   The charges are considered to be adjusting items as they are based on judgements about their value and economic life and are not related to the Group's underlying trading performance. These charges are reported as adjusting items on the basis that they are significant in quantum and to aid comparability from one period to the next.

   Ocado Retail Limited - UK network capacity review (£2.8m)

   On 25 April 2023, Ocado Retail Limited announced the plan to cease operation at its Customer Fulfilment Centre (CFC) in Hatfield as part of the wider review of UK network capacity. During H2 2023/24, Ocado Retail Limited also undertook a strategy and capacity review for the Zoom network. As a result, Ocado Retail Limited recorded impairment charges, restructuring costs and other related costs of closure. During the period the Group's share (50%) of a charge of £2.8m has been recognised (last year: £2.0m) reflecting the latest assumptions for estimated closure costs.

   The charges relating to Ocado Retail Limited are considered to be adjusting items as they are based on judgements about their value and economic life and are not related to the Group's underlying trading performance. These charges are reported as adjusting items on the basis that they are significant in quantum and to aid comparability from one period to the next.

   M&S Bank transformation and insurance mis-selling provisions (£33.1m)

   The Group has an economic interest in Marks and Spencer Financial Services plc (trading as M&S Bank), a wholly owned subsidiary of HSBC UK Bank plc (HSBC UK), by way of a Relationship Agreement that entitles the Group to a share of the profits of M&S Bank after appropriate deductions.

   On 9 April 2024, the Group and HSBC UK agreed a new seven-year deal focused on enhancing M&S' credit offering and payment solutions through M&S Bank and bringing together digital payments and loyalty for M&S customers.

   As previously disclosed, a deficit had accumulated since September 2012, primarily relating to liabilities recognised by M&S Bank for redress to customers in respect of possible mis-selling of financial products. Under the terms of the renegotiated Relationship Agreement, the Group has agreed to settle the deficit by the end of the new contract. Other one-off fees are also payable to M&S Bank under the renegotiated Relationship Agreement which will be recognised as a reduction to income over the term of contract.

   Costs of £33.1m have been recognised in the period, predominantly relating to the continued settlement of the deficit and a one-off fee in the period. Total programme costs to date are £53.6m with future net charges of c. £78.5m expected over the next five financial years. The charge in the period and total programme costs reflect the latest position of fees payable to M&S Bank under the renegotiated Relationship Agreement.

   All of these costs are considered to be adjusting items as they are significant in quantum and have crystalised as a result of major business change linked to M&S Bank. Recognition of these costs within adjusting items is consistent with the disclosure of costs relating to the deficit previously recognised within adjusting items. Furthermore these costs are significant in value to the results of both the Group and to the 'all other segments' segment.

   Net pension finance (charge)/income (£5.0m)

   In the period a net finance cost of £5.0m was recognised. The net pension finance income or expense can fluctuate significantly each year due to changes in external market factors that are outside management's control. Furthermore, as the scheme is now closed, it is not considered to be part of the ongoing operating activities of the Group. Therefore, consistent with how management assesses the performance of the business, the net pension finance income is considered to be an adjusting item.

   Net finance costs incurred in relation to Gist Limited deferred and contingent consideration (£3.8m)

   Deferred consideration, resulting from the acquisition of Gist Limited, is held at amortised cost, whilst the contingent consideration is remeasured at fair value at each reporting date with the changes in fair value recognised in profit or loss. A charge of £3.8m (last year: £7.6m) has been recognised in the period, representing the discount unwind of the deferred consideration and revaluation of the contingent consideration payable. No further costs are expected in 2026/27 as the final payment in relation to the deferred and contingent consideration has been made in H2 2025/26. See note 12 for further details. The discount unwind and change in fair value is considered to be an adjusting item as it relates to a major transaction and consequently is not considered representative of the normal operating performance of the Group.

4. Finance income/(costs)

   	2026 £m	2025 £m
   Bank and other interest receivable	39.3	54.9
   Interest income of subleases	5.7	5.7
   Finance income before adjusting items	45.0	60.6
   Finance income in adjusting items (see note 3)	-	4.1
   Finance income	45.0	64.7
   Other finance costs	(12.2)	(4.6)
   Interest payable on syndicated bank facility	(3.9)	(4.6)
   Interest payable on Medium-Term Notes	(30.6)	(36.7)
   Interest payable on lease liabilities	(150.8)	(115.9)
   Unwind of discount on provisions	(9.2)	(6.4)
   Unwind of discount on Partnership liability to the Marks & Spencer UK Pension Scheme (see note 9)	-	(1.4)
   Finance costs before adjusting items	(206.7)	(169.6)
   Finance costs in adjusting items (see note 3)	(10.4)	(7.6)
   Finance costs	(217.1)	(177.2)
   Net finance costs	(172.1)	(112.5)

5. Income tax expense

   The effective tax rate was 35.2% (last year: 43.0%). The effective tax rate in respect of M&S Group adjusted profit before tax was 27.5% (last year 26.7%)

6. Earnings per share

   The calculation of earnings per ordinary share is based on earnings after tax and the weighted average number of ordinary shares in issue during the year.

   The adjusted earnings per share figures have also been calculated based on earnings before adjusting items that are significant in nature and/or quantum and are considered distortive to underlying results (see note 3). These have been presented to provide shareholders with an additional measure of the Group's year-on-year performance.

   For diluted earnings per share, the weighted average number of ordinary shares in issue is adjusted to assume conversion of all dilutive potential ordinary shares. The Group has four types of dilutive potential ordinary shares, being: those share options granted to employees where the exercise price is less than the average market price of the Company's ordinary shares during the year; unvested shares granted under the Deferred Share Bonus Plan; unvested shares granted under the Restricted Share Plan; and unvested shares within the Performance Share Plan that have met the relevant performance conditions at the end of the reporting period.

   Details of the adjusted earnings per share are set out below:

   	2026 £m	2025 £m
   Profit attributable to equity shareholders of the Company	259.4	295.7
   Add/(less):
   Adjusting items (see note 3)	280.5	363.7
   Tax on adjusting items	(53.2)	(14.0)
   Profit before adjusting items attributable to equity shareholders of the Company	486.7	645.4
   	Million	Million
   Weighted average number of ordinary shares in issue	2,041.4	2,021.9
   Potentially dilutive share options under Group's share option schemes	73.9	88.8 2,110.7
   Weighted average number of diluted ordinary shares	2,115.3

   	Pence	Pence
   Basic earnings per share	12.7	14.6
   Diluted earnings per share	12.3	14.0
   Adjusted basic earnings per share	23.8	31.9
   Adjusted diluted earnings per share	23.0	30.6

7. Dividends

The directors have approved a final dividend of 3.0p per share (last year: 2.6p per share), which, in line with the requirements of IAS 10: Events after the Reporting Period, has not been recognised within these results. This final dividend of c.£62.0m (last year: £52.4m) will be paid on 10 July 2026 to shareholders whose names are on the Register of Members at the close of business on 5 June 2026. The ordinary shares will be quoted ex-dividend on 4 June 2026.

A dividend reinvestment plan (DRIP) is available to shareholders who would prefer to invest their dividends in the shares of the Company. For those shareholders electing to receive the DRIP, the last date for receipt of a new election is 19 June 2026.