M&S aims to double Food sales and plans to double annual dividend

Marks & Spencer Group PLC said it aims to double Food division sales and boost Fashion, Home & Beauty online sales, with the company set to outline the next phase of its transformation strategy at a capital markets day on Tuesday.

The London-based retailer is targeting mid-to-high single-digit sales growth over the medium term, with profit growth ahead of sales.

M&S aims to double Food sales, having grown annual sales by more than 50% since financial 2022, and achieve an operating margin of around 5% in the division.

In Fashion, Home & Beauty,the company targets operating margins of more than 10% across online and stores, alongside increased online participation. Its International business will focus on expanding the brand's global presence through capital-light channels.

"Delivering these ambitions will require continued investment in the M&S proposition and the transformation of the company’s end-to-end operating model," M&S said, "with the aim of driving productivity and operating leverage as the business grows."

The company remains on track to achieve £600 million in structural cost savings by financial 2028, it said, and expects free cash flow in each of the next three years. The retailer's financial year ends in March.

M&S also on Tuesday announced plans to double its financial 2027 dividend to 8.4 pence per share from 4.2 pence, with subsequent dividends intended to grow at least in line with earnings.

With its interim results last week, M&S declared an interim dividend of 1.4p, up 17% from 1.2p a year before. The financial 2026 full-year dividend of 4.2p was up 17% from 3.6p in financial 2025.

M&S shares were up 0.6% to 440.10 pence on Tuesday morning in London.

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