Marks & Spencer has pleased investors with solid results for its third quarter ending 27 December 2025, with food sales driving growth whilst fashion sales declined amid fragile consumer confidence and unseasonably mild weather.
The retailer’s food business delivered strong performance, with underlying sales rising 6.6% and like-for-like sales up 5.6%. UK volume growth reached 2.3%, with M&S achieving a historic high market share of 4.0% in November – marking over three years of consecutive market outperformance.
Marks & Spencer shares rose on the immediate reaction to the release, gaining 3% in early trade on Thursday.
Food was the real winner over Christmas for M&S. Total food sales hit £2.7 billion, supported by robust demand across core grocery categories. Innovation in Italian ready meals, in-store bakery and deli offerings contributed to growth, whilst value ranges including ‘Remarksable Value’ and ‘Bigger Pack, Better Value’ expanded by 20%.
The division benefited from increased customer numbers and shopping frequency, alongside strong operational execution that reduced markdown and waste versus the prior year.
“Marks & Spencer will be hoping the Christmas quarter provides a springboard into the new year, one the retailer desperately needs,” said Mark Crouch, market analyst for eToro.
“The festive period delivered a respectable showing in food, with like-for-like sales up 5.6 per cent, but that’s where the Christmas cheer ended. Clothing, home and beauty slipped 2.9 per cent, a reminder that the aftertaste of last year’s cyber-attack still lingers.”
Fashion, Home & Beauty sales fell 2.5%, with like-for-like sales down 2.9%, generating £1.3 billion in revenue. Whilst online sales returned to growth, this was offset by declining store sales attributed to reduced high street footfall and lingering effects from an earlier operational incident impacting stock data and management.
Despite entering the sale period with higher stock levels than last year, sell-through rates proved strong. M&S regained market share leadership in the category and now ranks first for customer perceptions of style, quality and value. New season products are resonating with customers, and the Bristol Cabot Circus store is outperforming expectations.
International and Ocado Performance
International sales rose 0.9% to £158 million, with new wholesale agreements and online growth offsetting shipment phasing issues and weaker Indian performance.
Ocado Retail sales increased 13.7% to £843 million, driven by 10.7% volume growth and 11.0% order growth. M&S products on Ocado.com grew 16.3%, representing approximately 30% of total Ocado Retail sales.
“Having been on cloud nine earlier in the year, the cyber incident delivered a stiff dose of reality for M&S management and investors alike,” Crouch said.
“In a fragile consumer environment, M&S cannot afford to let anymore momentum slip through its fingers. Christmas may have steadied the ship, but turning seasonal cheer into durable growth will now require flawless execution.”