Following today’s release of Marks & Spencer’s figures for the 52 weeks ending 28 March 2026; Eleanor Simpson-Gould, senior retail analyst at GlobalData, a leading intelligence and productivity platform, offers her view: “Marks & Spencer has navigated an unprecedented year with resilience, showing signs of recovery in the latter half of its financial year ending 28 March 2026. The retailer reported a modest 1.9% rise in group sales, excluding Ocado Retail, supported by a star performance in its Food segment. While the non-food division has yet to return to growth, the retailer made progress in the second half, recovering from a 16.4% decline in Fashion, Home & Beauty sales in H1. Operating profit before adjusting items fell by 16.9% for the full year, reflecting markdowns and stock clearance that followed the cyberattack. Despite these setbacks, Marks & Spencer maintains an optimistic outlook for the coming financial year. Although heightened cost headwinds from the impact of the Iran conflict weigh on fuel, freight and input costs, Marks & Spencer expects a return to profit growth, and its share price has increased modestly this morning as a result.
“The robust performance of Marks & Spencer’s Food segment has been pivotal in supporting the overall business during this exceptional year. Although the food business was more insulated than its non-food counterpart during the attack, margins were not immune to elevated markdown and waste costs, which caused margins to fall to 2.0% in H1, before recovering to 4.6% by year-end. The retailer’s strong brand equity and focus on innovation and quality have made it a formidable force in the UK food & grocery market. This strength persisted despite the cyber impact, with full-year food sales outperforming the market, rising by 7.0%. The introduction of innovative product ranges, such as the Nutrient Dense line, and the retailer’s knack for creating viral products, will continue to support market share growth into the new year.
“In the Fashion, Home & Beauty segment, the repercussions of the cyberattack are evident, where sales declined 7.7%. The first half of the year was particularly challenging, with a 42.9% decline in online transactions due to the closure of the Marks & Spencer website for six weeks and unparalleled disruptions to stock replenishment in stores. This significantly impacted margins, which fell to 2.7% during H1. By year-end, Marks & Spencer recovered margins to 5.5%, although this remains below the previous year’s 11.2%, highlighting recovery is ongoing. As part of its comeback, Marks & Spencer relaunched its Sparks loyalty app in April 2026, transitioning from broad discounts to a personalised, wallet-based rewards system. This should improve customer engagement, and product-focused marketing will generate more personalisation.
“Marks & Spencer has further modernised its image over the last year, by capturing current social-media trends. The retailer launched power-dressing ranges inspired by The Devil Wears Prada sequel and broadcast a live showcase of its Spring/Summer 2026 collection in May 2026. Although this has helped Marks & Spencer appeal to younger demographics, the retailer must ensure it does not alienate its long-standing consumers, who have expressed concern about underrepresentation in its recent marketing.”
