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Marks and Spencer Group PLC on Wednesday reported a sharp fall in annual profit, scarred by disruption from last year’s cyber attack, although the decline was not as marked as forecast. The London-based clothing, food and homeware retailer said pretax profit dropped 29% to £364.6 million in the 52 weeks to March 28 from £511.8 million the year prior. Adjusted pretax profit fell 24% to £671.4 million from £881.1 million, but beat Visible Alpha consensus of £640.3 million. Sales grew 25% to £17.37 billion from £13.91 billion with statutory revenue also up 25% to £17.27 billion from £13.82 billion. Basic earnings per share declined 13% to 12.7 pence from 14.6p. Adjusted EPS dropped 25% to 23.8p from 31.9p, ahead of 22.6p consensus. The full-year dividend was raised 17% to 4.2p per share from 3.6p, including a final payout of 3.0p, up on-year from 2.6p. Shares in M&S were up 2.1% at 333.80 pence each in London on Wednesday morning. The wider FTSE 100 was down 0.4%. M&S said it 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.’ Food sales grew 7.0%, with like-for-like growth of 6.7%, as customer numbers increased and market share grew 17 basis points to 4.1%. Adjusted operating profit was £444.5 million down from £491.8 million in the prior year, reflecting sustained volume growth in the second half following the impact of increased markdown and waste in the first half. But Fashion, Home & Beauty sales declined 7.7%, reflecting the temporary pause in online trading and systems access following the cyber attack. Here, adjusted operating profit was £213.4 million, more than half last year’s £478.0 million total. Chief Executive Stuart Machin said it was an ‘extraordinary year’. ‘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,’ he added. Food was ‘our standout performer’, the CEO said, while the recovery at Fashion, Home & Beauty has ‘taken longer, but there is strong growth potential’. He also bemoaned a ‘triple whammy of headwinds’ facing retailers with ‘increased taxation, a greater regulatory burden and ongoing global conflict’. International sales declined 7.2% with an improving performance in the second half, partly offset by shipment delays to the Middle East in the final month of the financial year. Looking ahead, M&S said profit growth is ‘expected to resume’ versus financial 2024/25, although it gave no specific figures. ‘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,’ M&S said. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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