Marks & Spencer Recapping our expectations ahead of FY 26 results

Research evidence excerpt

Marks & Spencer Recapping our expectations ahead of FY 26 results

C A Z E N O V E Europe Equity Research

15 May 2026

Marks & Spencer Overweight

MKS.L, MKS LN

Recapping our expectations ahead of FY 26 results Price (14 May 26):321p

Price Target (Mar-28):440p

Ahead of Marks & Spencer’s FY 26 results, scheduled for next week (20 May), we European General Retail

ACthought it useful to recap our forecasts and where we see broader expectations. Georgina Johanan, ACA

Following a strong start to the year, the shares have underperformed UK peers, (44-20) 7134-5791

falling by >20% in the last 3 months, weighed by potential impacts from the georgina.s.johanan@jpmorgan.com

ongoing conflict in Iran and broader UK concerns, but also disappointing stock J.P. Morgan Securities plc

specific Worldpanel clothing data. Sentiment remains low with shorter term Fiyin Durojaiye

investors expecting FY 27 PBT guidance to come in MSD+% below BBG sell-side (44-20) 3493-0455

fiyin.durojaiye@jpmorgan.com

cons for £959m. We nudge our FY 27 PBT forecast down by 1%, and forecast J.P. Morgan Securities plc

£940m, which we think would be considered a reassuring result in the context of

Shailja Maskara

the recent underperformance, particularly with the stock trading on a FY 27 PE of (91-22) 6157-3318

9.5x JPMe. Albeit we are mindful of broader risks to the UK consumer outlook as shailja.maskara@jpmchase.com

the year progresses if further political instability develops, and exacerbates J.P. Morgan India Private Limited

inflationary pressures (indeed such a combination could weigh across the income

Specialist Sales contact details:demographics, resulting in weaker overall sentiment than through the 2022/ 23

cost of living crisis). Olivia Petronilho - Specialist Sales -

European Consumer