Marks and Spencer (M&S) increased Fashion, Home & Beauty (FH&B) sales by 17.5% to £2 billion in the 26 weeks to 26th September 2026, as the UK retailer recovered from last year's cyber incident.
Adjusted operating profit in the division rose to £150.5 million from £46.1 million, and the margin rose to 7.5%. However, sales and profit stayed below 2024/25 levels, when FH&B made £243.4 million at a 12% margin. M&S blamed limited stock availability, caused by manual ordering after the incident, and lower store sales during the long summer heat. The clothing market fell 5.5% compared with two years earlier.
Online now accounts for 35% of FH&B sales, but a shift towards categories with higher returns rates has raised fulfilment costs. M&S is investing in a Lichfield distribution centre and a dedicated returns warehouse in Sheffield.
Chief executive Stuart Machin said FH&B results "fell short of their potential" and described its end-to-end transformation as "in the foothills". M&S expects FH&B to improve again in the second half.
