M&S on the road to recovery, says CT’s Smith17 Feb 2026 05:12
After a tough 2025, that included a cyberattack, Marks & Spencer is ‘on the recovery’, according to Columbia Threadneedle manager Jeremy Smith.
The Citywire Elite Companies AAA-rated retail stalwart is the ninth largest holding in Smith’s CT UK Equity Alpha Income fund, making up 3.5% of the £106m portfolio.
M&S reported lower than expected interim profits at the end of 2025, and the shares were also under pressure from a broker price target downgrade and concerns about weak UK retail trading in the run up to Christmas.
However, Smith said his investment thesis remains intact given free cashflow has turned positive and debt has been reduced.
‘We are encouraged by how management is reshaping and modernising the company, and we feel the digital business, where M&S currently lags its peers somewhat, has potential for expansion,’ he said.
‘The shares remain ‘reasonably valued’ with a high free cashflow yield, and the company’s capital markets day provided optimism given ‘senior leaders fleshed out ambitions around growing the food and online clothing businesses.
‘The cyberattack in April 2025 was a one-off event, so the focus should be on the recovery from here,’ said Smith.
Shares in M&S were trading down 0.18% at 398p on Monday but are up 21% year-to-date.