First Read: Marks & Spencer "Conference call feedback" (Buy) Rajani

Research evidence excerpt

First Read: Marks & Spencer "Conference call feedback" (Buy) Rajani

Global Research

20 May 2026ab

First Read

EquitiesMarks & Spencer

Conference call feedback United Kingdom

Retailers, Broadline

12-month rating Buy

Tone constructive overall on controllables with some caution on consumer

Management tone was constructive overall given the controllables in the business but 12m price target 425p

also grounded given the pressures in the external environment. On April/early Q1

trading in FHB which was the key concern, management referenced a specific recent

Price (20 May 2026) 341p

period 'two weeks ago' where they beat their budget 'significantly' pointing to good

business momentum when external conditions are right. On the consumer and inflation RIC: MKS.L BBG: MKS LN

backdrop, commentary was more cautious, with management highlighting rising Trading data and key metrics

concern among customers around cost of living, political uncertainty and confidence.

52-wk range 408p-309

They also noted that cost pressures are not yet being driven materially by the Middle

Market cap. £7.21b/US$9.65b

East, but they are monitoring it closely, with potential future impacts via supply chain

Shares o/s 2,113m (ORD)

and sourcing costs.

Free float 100%

FHB broadly normalised with confidence in margins returning to c.11% Avg. daily volume ('000) 7,911

Commentary suggests FHB has broadly returned to normalcy as promised. Availability Avg. daily value (m) £27.7

has improved, now running in the high-80s. Stores lagged online but have also Common s/h equity (03/26E) £3.16b

normalised in the last two weeks. Smaller sizes continue to be out of stock due to P/BV (03/26E) 2.1x

stronger-than-expected sell-through. Inventory levels are higher at around 15 weeks of Net debt to EBITDA (03/26E) 1.4x