Marks & Spencer Group (MKS) H1 24/25 (Q&A) earnings summary

Executive summary

• Profit before tax and adjusting items rose 17.2% to £407.8m, with statutory profit before tax up 20.4% to £391.9m compared to the same period last year.

• Group sales increased 5.8% year-over-year to £6.5bn, with strong performances in Food and Clothing & Home segments.

• Market share grew in both Food and Clothing & Home for the fourth consecutive year, supported by product innovation and value initiatives.

• Structural cost reduction program delivered £60m in savings during the period, on track for long-term targets.

• Customer base reached 32.5 million on a rolling 12-month basis, with growth in both volume and value sales.

Financial highlights

• Food sales up 8.1% year-over-year (like-for-like +7.5%), with an operating margin of 5.1%.

• Clothing & Home sales up 4.7% (like-for-like +5.3%), margin 12.0%, down 40 basis points due to digital investment.

• International sales declined 10.3%, mainly due to India and a softer order book; adjusted operating profit £15.2m, margin 4.7%.

• Online sales in Clothing & Home grew 11% in the half; UK online sales up 16.5% in Q2.

• Free cash flow from operations was £16.3m, down year-over-year due to higher working capital outflows.

Outlook and guidance

• Trading in the first five weeks of the second half shows continued momentum in food, with clothing softer due to warmer weather.

• Cost inflation remains elevated and consumer environment uncertain, but trading remains on track.

• Confident in making further progress in H2 and well prepared for Christmas.

• Targeting £500m of cost savings by FY28; store rotation and digital investment to accelerate.

• Ongoing focus on quality, value, and disciplined capital allocation.