Marks & Spencer has set out ambitious medium-term growth targets and pledged to double its dividend as the retailer seeks to build on the turnaround achieved over the past four years.

The plans were unveiled at the firm's Capital Markets Day 2026, where executives outlined the next stage of its 'Reinventing for Growth' strategy.

The FTSE 100 retailer said it is targeting mid-to-high single-digit sales growth, with profit growth expected to outpace revenue increases as efficiency gains and cost savings feed through to the bottom line.

In its food division, M&S aims to double sales over time, having already grown annual food revenues by more than 50% since FY22. The business is targeting further market share gains while delivering an operating margin of around 5%.

Within Fashion, Home & Beauty, the company to increase online sales to around half of total revenue, supported by a streamlined estate of 180 highly productive stores. The division is targeting operating margins of more than 10% across both physical and online channels.

Internationally, M&S plans to expand its global presence through asset-light partnerships and franchise agreements, allowing the brand to grow overseas without significant capital investment.

The company said continued investment in its customer proposition and operating model would be required to achieve these goals, alongside an intensified focus on productivity and cost reduction. It remains on track to deliver its previously announced £600m structural cost savings programme by FY28, with further efficiency opportunities expected beyond that milestone.

M&S said it expects to generate free cash flow in each of the next three years.

On the back of that confidence, the retailer announced that the 2026/27 full-year dividend will double to 8.4p per share from 4.2p. Thereafter, the company intends for dividends to grow at least in line with earnings.

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