Marks & Spencer Group (MKS) H1 24/25 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% to £6.5bn, driven by Food sales up 8.1% and Clothing & Home up 4.7% year-over-year.

• Market share grew in both Food and Clothing & Home, supported by product innovation and value initiatives.

• Net debt reduced by £399.9m to £2,164.1m, and return on capital employed increased to 15%.

• Store rotation and digital transformation initiatives are accelerating, with new stores and renewals trading ahead of plan.

Financial highlights

• Group sales reached £6.5bn, up 5.8% year-over-year; statutory revenue was £6,481.0m, up 5.7%.

• Profit before tax and adjusting items was £407.8m, up 17.2% year-over-year; adjusted operating profit £462.7m, up 12.7%.

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

• Net capital expenditure increased to £231.8m, focused on store renewal, supply chain, and digital investments.

• Adjusted basic EPS rose 20.5% to 14.7p; basic EPS up 32.1% to 14.0p.

Outlook and guidance

• Management expects continued progress in H2, with strong Christmas trading anticipated.

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

• Ongoing focus on cost reduction, digital transformation, and store rotation to drive future growth.

• Working capital outflow expected to largely reverse in H2, with a full-year outflow of £50m.