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M&S shares rise 4% as recovery stays on track despite cyber disruption and weaker clothing sales

Company Fundamentals
20 May 2026
Proactive Investors
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Bullish
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Marks and Spencer (M&S) reported a 24% drop in adjusted pre-tax profit to £671.4 million, impacted by a cyber incident and weaker clothing sales. However, strong fourth-quarter food and fashion sales, with food sales up 7% for the year, helped reassure investors. Analysts remain cautiously optimistic about profit growth in 2027 despite cost pressures from fuel, freight, and taxes. M&S's recovery is supported by improved store and online sales, new store formats, and a strong balance sheet with net cash of £338 million, suggesting potential for future profit growth and shareholder returns.

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