Marks & Spencer has revealed that its profits more than doubled over the past six months amid a recovery following last year’s cyberattack, but warned that it faces an “onslaught of cost headwinds”.
The high street giant has been buoyed by strong growth across its food business, which is performing “ahead” of plan.
However, boss Stuart Machin said results from its fashion, home and beauty business “fell short of their potential”, despite bouncing back from the impact of the cyberattack.
Last year, the retailer suspended all online sales on its website for around six weeks and suffered empty shelves due to disruption to its logistics systems after hackers targeted the business around the Easter weekend.
Bosses said recent sales and profits from its fashion, home and beauty business were still being affected by disruption to product availability due to the “long-tail impact” of the cyber incident.
Meanwhile, store sales were also partly affected by the prolonged period of hot weather over the summer.
It comes as M&S said larger, modern stores continued to outperform.
The retailer highlighted its recently refurbished Pantheon flagship store on Oxford Street as an example of the potential of larger, modern stores in growing locations and a test bed for future investment in fashion, home and beauty.
Since reopening, sales across its fashion, home and beauty floors have increased by 27% compared with 2024/25.
Online sales increased by 11.2% compared with 2024/25, adjusted for the exit from bulky furniture. Online sales accounted for 35% of total sales, up from 33% in 2024/25.
On Wednesday, the company revealed that adjusted pre-tax profits had risen to £403.2 million for the 26 weeks to 26 September, compared with £184.1 million a year earlier.
However, profits remained below those recorded during the same period in 2024, reflecting weaker performance in fashion, home and beauty, alongside higher costs.
M&S said it had absorbed around £35 million in additional costs resulting from increases in packaging taxes, wages and National Insurance contributions, as well as costs linked to disruption in the Middle East.
“Despite the onslaught of cost headwinds, we have remained focused on our ambitions, and we are clear on our plan,” said Machin.
“We enter the second half in a strong position, with a solid performance in October under our belts.”
M&S reported a 16.2% increase in sales to £9.25 billion for the half-year to September.
Its food business recorded a 13.9% rise in sales, benefiting from an 11.9% increase in volume sales, as well as store openings and investment.
Meanwhile, fashion, home and beauty sales increased by 17.5% year-on-year, supported by the recovery in online sales following the cyberattack.
“Availability and stock flow are now improving, we are broadening our appeal and the brand is in good health, but the results fell short of their potential and show there is a lot more to do,” added Machin.
“We are resetting the backbone of the business, from sourcing and supply chain to merchandise planning, stores and online. Although we have much-improved products, the end-to-end transformation is still in its early stages.”
M&S said menswear continued to perform strongly, driven by product improvements. In womenswear, sales conversion was affected by availability issues in selected core lines and sizes resulting from the cyber incident.
In September, M&S also announced a partnership with Sephora to create a new beauty destination in selected stores and online from spring 2027.
The retailer expects the partnership to broaden its customer appeal, strengthen its beauty offering and create further growth opportunities.