What: At its Capital Markets Day, M&S set a medium-term ambition of mid-to-high single-digit sales growth, with profit growth ahead of sales.

Why it is important: M&S sets separate margin targets by business: around 5% in food and above 10% in fashion, home and beauty, in both channels. This gives a benchmark for retailers that combine food and general merchandise.

M&S set out targets by business at its Capital Markets Day. In food, it aims to double sales over time, having grown annual sales by more than 50% since FY22, while continuing to gain market share. In fashion, home and beauty, it is targeting online participation towards 50% with 180 highly productive stores, also while gaining market share. In its international division, it wants to build a more global brand presence through capital-light channels.

Delivering these ambitions will require continued investment in the M&S proposition and the transformation of its end-to-end operating model, aimed at productivity and operating leverage. M&S is on track for its £600 million ($807 million) structural cost reduction objective by FY28.

With free cash flow expected in each of the next three years, M&S says it can invest for growth while increasing shareholder returns. The full-year 2026/27 dividend will double to 8.4 pence from 4.2 pence, and dividends are intended to grow at least in line with earnings. Last week, M&S said first-half profit rebounded from last year's cyberattack-hit level but was down on a two-year basis as food earnings failed to fully offset clothing weakness.

IADS Notes: The targets build on moves M&S made over the past quarter. On fashion, its first London Fashion Week show put 57 looks on sale immediately in stores and online, and followed a 24% profit slump in 2025/26 tied to a cyberattack (Reuters, September 2026). A limited-edition capsule with Aries also revived the historic St Michael label for younger shoppers (Fashion Network, September 2026). In beauty, M&S is bringing Sephora's range and advisors into 100 UK stores and online from spring 2027 while continuing to invest in its own-label categories (Retail Week, September 2026). The capital-light international ambition is already visible in its Zalando logistics partnership, which covers online fulfilment in 22 European countries and has cut delivery costs by up to 58% (Retail Week, August 2026). On the cost side, M&S's chief executive and John Lewis Partnership's chair urged the chancellor to avoid new taxes on high street retailers ahead of the 28 October Budget, pointing to the pressure from the last two Budgets (Retail Week, October 2026).

M&S targets profit growth ahead of sales over medium term