Marks & Spencer more than doubled its adjusted pre-tax profits in the first half "despite the onslaught of cost headwinds", as the retailer continued its recovery from last year's cyber attack.

Sales in the 26 weeks to 26 September jumped 16.2% to £9.26bn, while adjusted pre-tax profits soared to £403.2m from £184.1m a year previously. Statutory pre-tax profits reached £355.1m, compared with £3.4m in the previous year.

Food remained the strongest performer, with sales increasing 13.9% to £5.16bn, including like-for-like growth of 11.7%. Adjusted operating profit in the division rose to £288.6m, with a margin of 5.6%.

Fashion, Home & Beauty sales increased by 17.5% to £2bn, with the division gaining market share despite a declining clothing market. However, profitability and sales remained below levels recorded two years ago, partly because of availability problems caused by the lingering impact of the cyber attack and higher online fulfilment and returns costs.

Ocado Retail, in which M&S holds a 50% stake, reported a 20.6% increase in revenue to £1.78bn, while international sales grew 22.1%.

M&S said it had faced an onslaught of external cost pressures, including higher wages and National Insurance contributions, around £35m in packaging taxes and disruption in the Middle East. It expects more than £120m of structural savings over the full year, with its £750m capital investment programme across stores, supply chain and technology remaining on track.

M&S CEO Stuart Machin said: "We hit the ground running in the first half of the year, accelerating the pace of change and delivering market share growth in both businesses. Our hard work over the last few years to create a strong balance sheet has built a firm financial footing from which to invest in the opportunities ahead. Despite the onslaught of cost headwinds, we have remained focused on our ambitions, and we are clear on our plan."

The retailer reaffirmed its full-year guidance, with adjusted pre-tax profits expected to meet market expectations of around £941m. It increased its interim dividend by 16.7% to 1.4p per share.

Machin added: "We enter the second half in a strong position, with a solid performance in October under our belts. Four years ago, we set out a very clear strategy to protect the magic of M&S while modernising the rest and we are making good progress. As we look forward to Christmas, we are laser-focused on delivering both our trading and transformation plans."

M&S shares rose around 5.8% to 438p in early afternoon trading, reaching a new 52-week high.

Dan Coatsworth, head of markets at AJ Bell, said: “Marks & Spencer is on the road to recovery as it tries to put last year’s cyber disruption in the rearview mirror. However, the journey is far from complete as first-half sales and profits are still below pre-cyber-attack levels.

“Candidly, M&S chief executive Stuart Machin says the results fell short of their potential and that there is more to do. That shows drive and determination to put the business back on top, but a realisation that Machin can’t click his fingers and return everything to normal after one of the most disruptive periods for M&S in decades.

“High energy prices have created the wrong environment for retailers to prosper, meaning Christmas 2026 has the potential to disappoint unless consumers feel like they deserve to splurge as a ‘pick me up’ after a challenging year. M&S is well placed to benefit if that happens, as there is always a sense of affordable luxury about its products. But reality could bite, and there is no guarantee of a festive flurry in trading.”

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