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Marks & Spencer Group PLC on Thursday reported increased sales in its financial third quarter, which included the Christmas period, as strong food sales made up for M&S clothing being left on the rack by shoppers. In response, the stock was 3.0% higher at 338.30 pence per share in London on Thursday morning. The wider FTSE 100 index was down 0.3%. The London-based clothing, food and homeware retailer said group sales climbed by 24% to £4.99 billion in the 13 weeks ended December 27 from £3.86 billion in the third quarter of the prior year. The big jump was due to the inclusion of sales by Ocado Retail, which was consolidated by M&S from April 6. Excluding this, sales increased 3.3% on-year to £4.15 billion. Ocado Retail is M&S’s online grocery delivery joint venture with Ocado Group PLC. ‘A record number of customers shopped M&S this Christmas,’ commented Chief Executive Stuart Machin. ‘From the festive food shop, to picking up party outfits and gifts, millions more trusted M&S to deliver the family Christmas.’ Food sales rose 6.6% on an annual basis, or 5.6% like-for-like, to £2.72 billion. ‘Food sales were strong and the business continues to outperform, hitting a new market share milestone in the period,’ Machin said. ‘We are the UK’s fastest growing grocer for families, reflecting our investment in value and core family staples, and demonstrating progress in our journey to become a shopping list retailer.’ However, Fashion, Home & Beauty sales decreased by 2.5%, or 2.9% on an LFL basis, to £1.27 billion. M&S said declining in-store trading offset a return to growth online, which occurred ‘despite an environment marked by fragile consumer confidence and milder weather’. However, Machin said: ‘Fashion, Home & Beauty is getting back on track as we work through the tail end of recovery. Sales overall were slightly down but online performance continued to improve as digital sales recovered.’ M&S is ‘looking forward with confidence’, the CEO said, planning to ‘accelerate the reshaping strategy against the context of an uncertain consumer environment’ as the company enters calendar 2026. M&S said its full-year guidance remains unchanged. Previously, in early November, it said it was confident it would be ‘back on track by the financial year-end’, expecting profit at least in line with the £468 million delivered for the year ended March 29, 2025. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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