Source: Sharecast
Sales in the 26 weeks to 26 September jumped 16.2% to £9.26bn, while adjusted pre-tax profits soared to £403.2m from £184.1m a year previously.
However, on a two-year basis, profits remained below 2024/25’s interim income of £413.1m, as strong demand for M&S’s food offering failed to offset weaker conditions in clothing.
Food sales rose 13.9%, or by 11.7% on a like-for-like basis, to £5.16bn, while Ocado Retail revenues sparked 20.6% at £1.78bn. M&S food sales now comprise 30.9% of the average basket of the online grocer.
However, in fashion, home and beauty, while like-for-like sales grew 17.3% to £2bn, they failed to surpass levels seen two years ago. M&S said of the division: "Despite strong brand health indicators for quality, value and style, and further market share growth, sales and profit remained below two years ago as the business did not maximise conversion of demand to sales."
Availability was constrained by the longer-than-expected impact of manual ordering processes following the cyber attack - which hit clothing especially hard - while profitability was dented after a rise in online sales ramped up fulfilment costs. Returns volumes also increased faster than sales, weighing on the division’s operating margin.
Chief executive Stuart Machin said the group was focused on "resetting the backbone of the [FHB] business, from sourcing to supply chain, merchandise planning, stores and online. Although we have much improved product, the end-to-end transformation is in the foothills".
Machin also warned that the retailer was facing an "onslaught of cost headwinds" from packaging taxes, increased pay and National Insurance contributions and the impact of war in the Middle East.
But despite that the chain reiterated guidance for the full year, confirming adjusted pre-tax profits remained on track to meet market expectations. Consensus is currently for annual profits of around £941m.
Machin said: "We enter the second-half in a strong position, with a solid performance in October under our belts. We are ready to deliver an unforgettable Christmas for our customers, with the best food and fashion ranges we’ve ever had."
The 2025 cyber attack left food shelves empty, forced M&S to suspend online orders for almost two months and click and collect for nearly four, and wiped out profits.
See latest RNS on Sharecast