M&S recovering after profits hit by cyber attack – Daily Business

Marks & Spencer: a year of two halves

Marks & Spencer said it had seen “a year of two halves” after a cyber attack hit sales and led to a sharp fall in profit.

The retailer suffered a £131m hit from the attack which caused severe disruption for three months.

The chain said it had bounced back from the incident and enters 2026/27 with a clear plan and a strong balance sheet that will see profit growth resume.

For the year to 28 March it saw a 23.8% fall in adjusted profit before tax to £671.4m, though the second half was up up 4.1%. Statutory profit before tax was down 28.8% at £364.6m.

Food sales rose 7%, fashion, Home & Beauty sales were down 7.7% and International sales 7.2% lower. The board is proposing a 16.7% rise in the full year dividend to 4.2p

The company opened 12 food and 3 full line stores during the period.

Higher fuel and freight costs due to the Iran war, on top of a heavier tax and regulatory burden, have added to pressures across the high street. 

“Retailers face a triple whammy of headwinds with increased taxation, a greater regulatory burden and ongoing global conflict,” chief executive Stuart Machin said. 

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