Marks and Spencer reported strong full-year earnings, with sales and profits increasing, despite cyberattack setbacks.

From Morningstar: 2025-05-21 12:13:00

Marks and Spencer (MKS) reported full-year fiscal 2025 results, with sales up by 6.1% and operating profit growing by 17.4%. The firm outperformed the UK market, showing success in its transformation efforts. UK food sales increased by 8.6%, clothing sales by 4.4%, but international sales declined by 7.1%.

Operating margins for food and clothing segments exceeded targets at 5.4% and 11.2%, respectively. The Ocado Retail joint venture losses impacted earnings. Cyberattack disruption is expected to have a GBP 300 million negative impact on fiscal 2026 profitability. Marks and Spencer plans to resume online sales soon.

Despite the cyberattack setback, the firm remains on track with its transformation initiatives. The firm expects capital expenditure between GBP 600 million and GBP 650 million in fiscal 2026. Analysts have set a fair value estimate of GBX 342 per share for Marks and Spencer, viewing current shares as fairly valued.



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