Marks & Spencer Group plc: UPDATE: Clearing event - guidance for profit growth on pre-cyber base

Research evidence excerpt

Marks & Spencer Group plc: UPDATE: Clearing event - guidance for profit growth on pre-cyber base

Equity Research

European General Retail

20 May 2026

Marks & Spencer Group plc

UPDATE: Clearing event - guidance

for profit growth on pre-cyber

MKS.L/MKS LN OVERWEIGHTbase

European General Retail NEUTRAL

2H25/26 beat driven by Food - with strong LFL and Price Target GBP 4.00

profitability. FH&B availability back to normal. Guidance for Price (19-May-26) GBP 3.27

FY26/27 profit growth on pre-cyber base (£881m). We expect PotentialSource: Bloomberg,Upside/DownsideBarclays Research +22.4%

the print to be well-received and could open the door to a

European General Retailmore sustainable re-rating. OW.

Matthew Clements

+44 (0)20 7773 6018

UPDATE This publication is an update to 'Marks & Spencer Group plc: Clearing event - guidance matthew.clements@barclays.com

for profit growth on pre-cyber base', originally published on 20 May 2026 at 07:56 BST. This Barclays, UK

version corrects disposal proceeds and capex guidance for FY26/27. Imogen Doyle

+44 (0)20 7773 2605

A year of two halves and two businesses for M&S, but a solid 2H25/26 beat driven by Food imogen.doyle@barclays.com

and guidance for profit growth on a pre-cyber base should be well-received. FH&B stock Barclays, UK

flow and availability is back to normal, and product is landing well (weather permitted).

Strong Food LFLs continued into 4Q with a strong recovery in profitability in 2H. M&S

ended the year with £338m of net funds and increased its dividend by +17% to 4.2p.

Investment will step up next year, with two thirds of capex on Food, the highest growth

and returns business. M&S expects profit growth in FY26/27 on a pre-cyber base (£881m),

we understand with a contribution from both businesses.