M&S Delivers Strong Christmas in Food as Fashion Recovers and Ocado JV Accelerates Growth

An announcement from Marks and Spencer ( (GB:MKS) ) is now available.

Marks and Spencer reported a solid Christmas trading period for the 13 weeks to 27 December 2025, with group sales of £4.99bn and continued momentum in its reshaping strategy. Food remained the standout performer, with underlying sales up 6.6%, like-for-like sales up 5.6% and UK volume growth of 2.3%, helping the retailer reach a record 4.0% grocery market share and reinforcing its position as the UK’s fastest-growing family grocer. The strength came from core grocery categories, quality and innovation in ranges such as Italian ready meals and in-store bakery, and rapid growth in value lines like ‘Remarksable Value’ and ‘Bigger Pack, Better Value’, while newer and refurbished stores outperformed the wider estate. In contrast, Fashion, Home & Beauty sales declined 2.5% overall, with store weakness and earlier-year stock data issues offsetting improved online performance, though M&S regained market share leadership in fashion and now ranks first for customer perceptions of style, quality and value, indicating progress in its brand repositioning. International sales edged up 0.9% as wholesale, online and food franchise growth compensated for weaker shipments and India, while Ocado Retail delivered a 13.7% sales increase, with M&S products up 16.3% and representing around 30% of Ocado Retail sales, highlighting the strategic importance of the joint venture. Management reiterated unchanged full-year guidance and signalled an acceleration of its transformation agenda, centring on value investment, product innovation, store and online upgrades, supply chain improvements and structural cost reductions, despite a backdrop of fragile consumer confidence and milder weather.

The most recent analyst rating on (GB:MKS) stock is a Buy with a £4.20 price target. To see the full list of analyst forecasts on Marks and Spencer stock, see the GB:MKS Stock Forecast page.

Spark’s Take on GB:MKS Stock

According to Spark, TipRanks’ AI Analyst, GB:MKS is a Neutral.

Marks and Spencer’s overall stock score is driven by strong financial performance and positive corporate events. However, the high P/E ratio and bearish technical indicators weigh down the score. The earnings call provided a mixed outlook with growth in certain areas but challenges in others. The company’s strategic initiatives and insider confidence are positive, but valuation concerns and technical weakness are significant risks.

To see Spark’s full report on GB:MKS stock, click here.

More about Marks and Spencer

Marks and Spencer Group PLC is a UK-based retailer with a core focus on food, fashion, homewares and beauty, serving family-oriented customers through a mix of stores, online channels and its Ocado Retail joint venture. The business is positioning itself as a value-driven, ‘shopping list’ grocer while also pursuing a store rotation strategy and digital improvement to strengthen its market share and brand perceptions in clothing, home and beauty.

Average Trading Volume: 9,001,186

Technical Sentiment Signal: Sell

Current Market Cap: £6.61B

See more insights into MKS stock on TipRanks’ Stock Analysis page.