Marks & Spencer has reported a recovery in fashion and home sales during the first half, but warned that the division’s performance remains below its potential as it continues to address the lasting impact of last year’s cyber attack.

For the 26 weeks to 26 September 2026, sales across its Fashion, Home & Beauty division increased 17.5 per cent to £2bn, compared with £1.7bn in the same period last year. Like-for-like sales rose 17.3 per cent.

Adjusted operating profit reached £150.5m, up from £46.1m a year earlier, while operating margin improved from 2.7 per cent to 7.5 per cent.

However, the division remains behind its performance two years ago, when it generated sales of £2.03bn and adjusted operating profit of £243.4m, with margins of 12 per cent.

M&S said the longer-than-expected impact of its 2025 cyber attack continued to constrain product availability. Manual ordering processes affected stock management, and the ability to convert customer demand into sales.

Womenswear was particularly affected by shortages in core products and sizes, while some categories had become too heavily weighted towards trend-led newness.

The retailer said it had improved core product availability ahead of the autumn/winter season through better stock flow and inventory management.

Chief executive Stuart Machin said the business had bounced back from the previous year’s disruption and gained market share in a declining market, but acknowledged that results had fallen short of expectations.

M&S is undertaking a wider transformation of its fashion and home operations, spanning sourcing, supply chain, merchandise planning, stores and online.

Online sales increased 11.2 per cent compared with 2024/25, adjusted for the exit from bulky furniture, and accounted for 35 per cent of division sales, up from 33 per cent. However, a greater proportion of online orders and rising returns have increased fulfilment costs and put pressure on profitability.

The retailer is investing in its Lichfield distribution centre and a dedicated returns warehouse in Sheffield to improve stock availability and reduce handling costs.

Its store rotation strategy is also showing results, with sales across the fashion and home floors at its refurbished Oxford Street flagship increasing 27 per cent compared with 2024/25 since reopening.

M&S expects the division’s performance to improve in the second half as availability recovers and its transformation gathers pace. It is also targeting an ongoing operating margin above 10 per cent.

The wider group reported adjusted pre-tax profit of £403.2m, more than double the £184.1m recorded last year, while food delivered particularly strong growth, with sales increasing 13.9 per cent to £5.2bn.

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