Half Year 2026 Marks and Spencer Group PLC Earnings Call Transcript
Key Points
- Marks & Spencer Group PLC (MAKSF) reported a 22% increase in group sales, primarily driven by the consolidation of Ocado retail.
- The food business showed resilience with robust sales growth of 7.8% in the first half, outperforming the market in volume growth.
- The company accelerated its transformation with investments in store rotation, supply chain modernization, and technology transformation.
- Marks & Spencer Group PLC (MAKSF) opened 15 new or renewed stores in the first half and plans to open more than 20 in the second half.
- Ocado retail sales were strong, with growth of 14.9% over the half, driven by M&A products which grew faster at 20%.
- Fashion, home, and beauty sales were down 16.4% due to paused online operations, affecting footfall and supply chain disruptions.
- The company faced a material impact on group operating profit due to an incident, estimated at around 300 million for the financial year.
- International sales were down 11.6% due to offline international websites and shipment disruptions.
- The consumer environment remains uncertain, with external headwinds such as increased national insurance contributions and packaging tax costing an extra 50 million.
- The company is still working through stock flow issues, with stock not in the right place everywhere, impacting availability.
Well, good morning, everybody. It's Archie here and I'm joined by Stuart and Alison obviously thank you for joining us today. I was going to say, great to see you all, but I can't see any of you.
So look, I think this is a set of results where we slightly feel we've said all there is to say about it, but I'm sure you'll think of some interesting questions. So let's crack on. Stuart is going to make a brief introduction and then we'll take whatever questions there are.
Thank you, Stuart.
Well, good morning, everyone, thank you for joining us. As Archie said, Alison joins me in the room today. We've also got Fraser and Helen, so they're on hand for any follow-up questions you may have throughout the day. I'm going to start with a look back at the half from April to September before moving on to give you some detail on where we are today. I will then look ahead to Christmas
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