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Marks & Spencer's half-year results show its Fashion, Home & Beauty (FH&B) division recovering from last year's cyber attack, but not yet back to where it was before. FH&B sales rose 17.5% to £2.0bn in the 26 weeks to 26 September 2026. However, that comparison is with a period badly disrupted by the incident. Against the same period in 2024/25, sales were down 1.7%, or flat once M&S's exit from bulky furniture is excluded.
For home and housewares suppliers, the channel figures are the more telling part. FH&B store sales fell 5.2% on two years ago, with high street stores hit hardest during the long summer heat. Online sales grew 11.2% over the same period (excluding furniture) and now make up 35% of FH&B sales, up from 33%. M&S does not report Home separately, so these figures cover the whole division.
Group and statutory results, 26 weeks to 26 September 2026. Source: M&S interim results RNS, 4 November 2026.
Profit still below 2024 levels
FH&B adjusted operating profit was £150.5m, up from £46.1m last year but still below the £243.4m reported two years ago. The operating margin was 7.5%, compared with 12.0% in 2024/25.
M&S gave two main reasons. Availability in some core lines was constrained because manual ordering after the incident lasted longer than expected. Online growth also brought higher fulfilment and returns costs, and the online margin was 6.0% against 8.4% for stores.
Fashion, Home & Beauty sales by quarter, sales, operating profit and margin. Source: M&S interim results RNS, 4 November 2026.
Group picture
Group sales rose 16.2% to £9.3bn. M&S Group adjusted profit before tax was £403.2m, up from £184.1m last year but slightly below the £413.1m achieved in 2024/25. Food sales rose 13.9%, with like-for-like sales up 11.7%. M&S said new, larger Food stores converted from former Homebase units performed particularly strongly.
Food sales by quarter, sales, operating profit and margin. Source: M&S interim results RNS, 4 November 2026.
Costs, sourcing and supply chain
M&S absorbed around £35m of packaging costs under the Extended Producer Responsibility (EPR) scheme, alongside higher pay and National Insurance costs. Against 2024/25, pay review and National Insurance costs added £135m to operating costs. The retailer expects more than £120m of structural cost savings this year.
M&S is improving its planning, buying and merchandising systems. Its sourcing work aims to raise the buying margin on core ranges while cutting lead times on seasonal and fast-moving lines. It has also acquired a distribution centre at Lichfield and is opening a dedicated returns warehouse in Sheffield.
What does this tell suppliers?
- The shift from stores to online is continuing. M&S's non-food store space is shrinking, and a growing share of FH&B sales is going through online channels.
- &S has said it wants better buying margins on core ranges and shorter lead times on seasonal lines. BHETA's reading is that suppliers of these ranges may see this reflected in commercial discussions.
- M&S Fashion, Home & Beauty shifts online as store sales slip 5% on two years ago (recommended)
- M&S recovers from cyber attack, but Fashion, Home & Beauty profit remains below 2024 levels
- Costs, returns and availability weigh on M&S Fashion, Home & Beauty recovery
- Cost pressure is industry-wide. EPR packaging charges and employment costs are weighing on retailers as well as suppliers.
- The second half matters. With availability recovered, M&S expects FH&B to improve, so Christmas trading will be the next test of non-food demand.
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