M&S profits slump 25% after cyber attack hits sales

(Sharecast News) - UK retailer Marks & Spencer posted a sharp fall in annual earnings, reflecting the impact of last year's cyber attack, but said profits had recovered in the second half.

Adjusted profit before tax for the 12 months to March 28 fell 23.8% to �671.4m with the second half recording a 4.1% rise. The cyber hack during Easter in 2025 led to online clothing orders being suspended for seven weeks and also hit food availability.

Hackers stole personal customer data including names, addresses, telephone numbers, emails, dates of birth, and online order histories, although no financial details were accessed.

The hack is estimated to cost �300m in lost operating profits, though M&S said it had received an insurance payout of �100m and said related costs were �131.3m.

Food sales -- which accounts for 56% of group revenues - rose 7% and the division grew market share, sales in fashion, home and beauty were down 7.7%.

Looking ahead, chief executive Stuart Machin said retailers face a "triple whammy of headwinds", including higher fuel, freight and input costs and continued government tax levies and regulation.

"These are being mitigated through improved buying, reinvestment in value to drive volume, and savings from the structural cost reduction programme," he said on Wednesday, adding that the company entered 2026/27 "with a clear plan and a strong balance sheet, focused on delivering further improvements to availability and service levels".

"Profit growth is expected to resume versus 2024/25."

Reporting by Frank Prenesti for Sharecast.com

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