Marks and Spencer Doubles Dividend and Sets Growth Targets

Marks and Spencer announced a series of growth targets and increased shareholder returns during its capital markets day on November 10. The retailer will double its full-year dividend for the 2026-27 financial year to 8.4p from 4.2p, with a commitment that future dividends grow at least in line with earnings.

To recover margins in its fashion, home, and beauty division, the company aims for online sales to account for nearly half of that division's revenue. The retailer also plans to operate from 180 highly productive stores. These measures follow a decline in division margins to 7.5% in the first half of the year, down from 12% two years ago, caused by summer heatwaves and a 2025 cyber incident.

At the group level, the company is targeting mid-to-high single-digit sales growth over the medium term, with the goal for profit growth to outpace sales growth.