M&S fashion division navigates 'tail end of recovery' with sales down 2.5 percent

While Marks and Spencer Group PLC (M&S) celebrated a record-breaking Christmas in its Food division, the Fashion, Home & Beauty (FHB) segment faced a more complex trading environment during the 13 weeks ending December 27, 2025.

The company said that the FHB segment at M&S is currently navigating the "tail end of recovery" as part of the company's broader growth strategy. For the 13 weeks period, the division reported a 2.5 percent decrease in total sales to 1.3 million pounds, with like-for-like sales declining 2.9 percent.

This performance was heavily influenced by a challenging external environment characterized by fragile consumer confidence and unseasonably mild weather, alongside reduced footfall on the high street. Additionally, the business dealt with a "long tail impact" on stock data and management stemming from an operational incident earlier in the year.

Chief Executive Stuart Machin indicated that the business is "getting back on track". The focus for the coming year involves accelerating the reshaping strategy by transforming the online experience and improving supply chains to ensure the Fashion business remains competitive in an uncertain environment.

During the period under review, despite the above mentioned headwinds, the division saw a significant return to growth in its online channels, which helped offset the decline in physical store sales. M&S managed to regain market share leadership during this period, achieving the number one ranking for customer perceptions of style, quality, and value. To manage inventory, the company planned a larger clearance sale in December; while stock levels were higher than the previous year, sell-through rates remained strong, clearing the way for new season lines.

The brand's physical "store rotation strategy" also showed positive momentum, with new locations such as Bristol Cabot Circus exceeding initial expectations. Looking ahead to 2026, leadership remains focused on doubling down on value, quality, and style within their new ranges while continuing to transform the online experience and improve supply chain efficiency.