Marks & Spencer: From Pick to Profit – The Online Margin Glow-Up

研报英文原文证据摘录

Marks & Spencer: From Pick to Profit – The Online Margin Glow-Up

C A Z E N O V E Europe Equity Research

21 July 2026

Marks & Spencer Overweight

MKS.L, MKS LN

From Pick to Profit – The Online Margin Glow-Up Price (20 Jul 26):380p

▲Price Target (Mar-28):450p

Prior (Mar-28):440p

M&S has a clear, quantifiable opportunity to close a meaningful portion of its

online margin gap in FH&B as the Lichfield DC ramps (opening in calendar 2027). European General Retail

We identify three tangible building blocks to c.400bps of FH&B online margin Georgina Johanan, ACA AC

upside, driving us to increase our FY 29 group PBT forecast by 6%. This leaves us (44-20) 7134-5791

LSD% ahead of Bloomberg consensus on group PBT, and 6%/ 5% higher on georgina.s.johanan@jpmorgan.com

J.P. Morgan Securities plc

FH&B/ Food EBIT. We do not view this as the maximum margin improvement

Shailja Maskaraavailable, nor the only opportunity in the business – but we are comfortable

(91-22) 6157-3318

embedding this upside given the tangible building blocks laid out in detail in this shailja.maskara@jpmchase.com

note. Indeed, our bull case scenario, also incorporating better order economics and J.P. Morgan India Private Limited

sourcing benefits, would drive a further 7% upside to our PBT forecast, and would

leave us DD% ahead of consensus. Valuation remains undemanding: M&S trades Specialist Sales contact details:

on a 10.7x CY27 PE – c.7% below its 5-year pre-pandemic average, despite Olivia Petronilho - Specialist Sales -

materially better turnaround visibility. We raise our Mar-28 multiples-based TP to European Consumer

450p (from 440p), applying a c.13x multiple (a 10% premium to the pre-pandemic (44-20) 3493-3709

olivia.b.petronilho@jpmorgan.com