Marks & Spencer said first-half profit more than doubled as the retailer recovered from last year’s cyber attack and its food business continued to attract consumers despite a questionable economic backdrop.
The company reported adjusted pre-tax profit of £403.2m for the 26 weeks to 26 September, up from £184.1m a year earlier, when a cyber incident disrupted its operations.
Statutory profit jumped from just £3.4m to £355.1m. Its food business led the way, with sales up 13.9% and volumes up nearly 12%, as M&S attracted 1.5 million more customers over two years.
It raised its interim dividend 17%.
This was all good news for investors, and Marks & Spencer shares rose 2.5% on Wednesday.
Its fashion, home and beauty business rebounded, with sales up 17.5% and market share gains in a declining clothing market, though M&S acknowledged that sales and profit there remained below pre-incident levels, held back by lingering availability problems and weaker store sales during the summer heat.
Its international arm grew despite Middle East disruption, and its Ocado Retail joint venture returned to profit. M&S said it was investing £750m across stores, supply chain and technology, and that it expected full-year profit in line with expectations.
Marks & Spencer back on track?
Chief executive Stuart Machin said the company was “reinvesting for growth” and ready to deliver “an unforgettable Christmas”.
The doubling of profit shows the group is back on track, with adjusted pre-tax profit coming in just shy of H1 2025’s £413m, but investors will want to see the recovery continue through the key festive trading period and the CEO deliver on his promises.
Dan Coatsworth, head of markets at AJ Bell, said: “Marks & Spencer is on the road to recovery as it tries to put last year’s cyber disruption in the rearview mirror. However, the journey is far from complete as first-half sales and profits are still below pre-cyber-attack levels.”
“Candidly, M&S chief executive Stuart Machin says the results fell short of their potential and that there is more to do. That shows drive and determination to put the business back on top, but a realisation that Machin can’t click his fingers and return everything to normal after one of the most disruptive periods for M&S in decades.”