Marks and Spencer’s first-half sales rose by 22.1% to £8.0bn. Food sales were up 7.8%, while Fashion, Home & Beauty sales declined by 16.4% due to the cyber-attack halting online sales between late April and early June.
Underlying pre-tax profit fell by 55.4% to £184mn (£122mn expected), including £100mn of insurance proceeds. Operational performance was negatively impacted by the cyber-attack which also resulted in increased stock management costs and higher markdowns and wastage in food.
Free cash flow fell from an inflow of £15mn to an outflow of £196mn. Net debt, including lease liabilities, rose from £2.2bn to £2.5bn.
M&S expects second-half profits to be at least in line with last year, pointing to underlying pre-tax profits of at least £468mn.
The shares were broadly flat in early trading.
Our view
HL view to follow.
Marks & Spencer key facts
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