Marks and Spencer has reported a third consecutive year of growth and a strong balance sheet for the year ended 29th March 2025, in its annual results preceding the cyberattack it suffered this spring – the damage of which is forecasted to cost it some £300m of 2025/26's operating profit, before cost mitigation, insurance and trading actions.
In the last year, PBT and adjusting items was up +22.2% at £875.5m, its highest in over 15 years. Statutory PBT was down -23.9%, at £511.8m.
Fashion, Home & Beauty sales were up +3.5% to £4.2b, with LFL sales up +4.4%.
The group says it ended the year on a "very strong" balance sheet, with £443.3m free cashflow from operations and £437.8m in net funds (excluding lease liabilities).
The retailer adds that Home saw good growth in collaborations such as Kelly Hoppen, and beauty grew own-brand fragrance sales, adding that "both offer significant potential for long-term growth and are being refocussed under new leadership".
The business' online sales, adjusted for the exit of furniture from M&S' stores, represented 34% of its sales.
“Three years ago, we introduced our Reshaping M&S for Growth plan with the objective of protecting the magic of M&S and modernising the rest," says chief executive, Stuart Machin. "Executing that strategy has delivered a third consecutive year of growth in sales and market share, profit and improving return on capital.
"Disciplined capital allocation and a much stronger balance sheet have put M&S on a robust financial footing, increasing resilience and creating capacity for future growth. M&S has net funds of over £400m and we are in our best financial health for nearly 30 years."
"In Fashion, Home & Beauty, our authoritative lead in quality and value perception and much improved style credentials has broadened appeal and grown market share. This renewed strength in product gives us the foundation to drive future growth through transforming our end-to-end supply chain and accelerating online. Consistent market outperformance over the past three years demonstrates the improvements we’ve made and I’m confident that with focused execution, we can deliver our plan.
"Overall, last year was another year of strong performance, and there are so many opportunities still ahead of us.
He continues: "We started the new financial year as we finished the last, with sales growth ahead of budget across both businesses. Over the last few weeks, we have been managing a highly sophisticated and targeted cyberattack, which has led to a limited period of disruption. We have tackled this head on with incredible spirit, teamwork and deep sense of responsibility as we prioritised serving our customers.
"It has been challenging, but it is a moment in time, and we are now focused on recovery, with the aim of exiting this period a much stronger business. There is no change to our strategy and our longer-term plans to reshape M&S for growth and, if anything, the incident allows us to accelerate the pace of change as we draw a line and move on.
"Over the last 140 years, M&S has overcome many challenges – testament to the longevity of this brand. This incident is a bump in the road, and we will come out of this in better shape, and continue our plan to reshape M&S for customers, colleagues and shareholders."
