M&S, NEXT and ASOS report stronger trading

M&S grows across channels

Marks & Spencer reported a strong recovery after last year’s cyber incident.

Statutory profit before tax reached £355.1m in the first half to 26 September 2026, up from £3.4m a year earlier. Group sales increased 16.2% to £9.26bn, while adjusted profit before tax more than doubled to £403.2m.

Food was the biggest growth driver. Food sales rose 13.9% to £5.16bn and UK volumes were up 11.9%. Fashion, home and beauty sales increased 17.5% to £2bn.

International sales climbed 22.1%, helped by franchise, marketplace and wholesale operations despite disruption in the Middle East. Ocado Retail also grew sales by 16% to £1.78bn.

M&S continued investing in its business. During the half it worked on 18 stores, including 13 new or extended locations and five renewals. It also invested in its Daventry and Avonmouth distribution sites, as well as digital and technology.

The retailer expects food margins to improve on 2024/25 levels and profits in fashion, home and beauty to keep improving. It expects full-year adjusted profit before tax to be in line with market expectations.

International sales drive NEXT

NEXT reported full-price sales growth of 8.1% in the 13 weeks to 31 October, beating its own expectations.

The retailer said all of the stronger-than-expected performance came from overseas markets. International online sales increased 32.2%, ahead of its forecast. NEXT said marketing through NEXT Direct performed better than expected, helping drive growth. Direct sales rose 32.7% and sales through third-party aggregators increased 31.3%.

Performance in the UK was more modest. Online sales grew 4.4%, while store sales fell 1.7%. UK full-price sales were up 2%, matching guidance.

NEXT said recent UK growth had been volatile. It pointed to a cooling labour market, inflation linked to the Iran war and unusually warm weather in September affecting sales.

Although stronger sales added profit, higher international operating costs, including new EU tariffs on orders shipped from UK stock, offset the gain. As a result, profit guidance remained unchanged.

ASOS returns to profit

ASOS returned to statutory profit and delivered its first quarter of sales growth in four years.

For the 52 weeks to 30 August 2026, statutory pre-tax profit was £24.4m, compared with a loss of £281.6m a year earlier. Revenue fell 9% to £2.25bn.

Most of the profit came from one-off gains linked to the sale of its Atlanta and Lichfield fulfilment centres. However, adjusted losses narrowed and adjusted EBITDA rose 29% to £170.3m.

Trading improved steadily through the year. Fourth-quarter gross merchandise value grew 4%, the first quarterly increase since 2022. The UK business returned to growth in the second half and womenswear sales rose 8%.

ASOS said the improvement came from more relevant products, tighter stock control, a more efficient supply chain and increased marketing. Its active customer base grew quarter on quarter for the first time in more than four years, supported by higher new customer numbers, lower customer losses and returning shoppers.

The business has made more than 100 improvements to its app and is focusing on personalised recommendations, virtual try-on and outfit-based shopping. It also said a cyber attack in October temporarily disrupted trading, mainly in the UK, although its website and app remained available throughout.

What RHR thinks

We believe these results show that the strongest UK retailers are finding growth by expanding beyond the home market rather than relying on UK demand alone. International sales stood out at both M&S and NEXT, while NEXT’s UK stores saw sales decline. We expect UK consumers to remain cautious into the new year, so retailers with a presence across multiple countries and sales channels are likely to perform best.

We also believe the results show how important supply chains and technology have become. M&S is investing heavily in distribution, ASOS has focused on stock control and personalisation, and NEXT is dealing with tariffs and cross-border fulfilment costs. Two of these businesses have faced cyber incidents in the past year, and we expect cyber resilience to become a board-level priority alongside product and pricing because it can directly affect sales.

What this means for hiring. M&S's investment in 18 stores, distribution sites, digital and technology could support demand for store, supply chain and technology roles. Growth in international sales at M&S and NEXT may increase opportunities in ecommerce, international trading and logistics teams. ASOS's focus on app improvements, personalisation and marketing points to continued demand for digital, ecommerce and marketing roles.