M&S Recovers From Cyber-Attack With £355m Profit

Marks & Spencer has stated that a severe cyber-attack which disabled its website last year continued to impact clothing sales throughout the summer, extending well past twelve months since the security breach occurred. The company announced that profits rebounded to £355m during the six months leading up to September 26, recovering from just £3.4m recorded in the previous year as operations partially normalised. The security incident commenced during Easter 2025 and forced the retailer to take down its e-commerce platform for more than six weeks.

Overall revenue across the food and fashion division climbed by 16.2% to reach £9.2bn for the half-year period. However, management noted that earnings and sales from the clothing and homewares segment remained lower than levels seen two years prior. This was attributed to constrained product availability resulting from prolonged manual ordering workflows established after the hack, while profitability faced pressure from a higher proportion of online transactions carrying elevated fulfilment expenses.

Previously, the retailer detailed how purchasing teams were compelled to estimate consumer demand and place supplier orders without the assistance of standard digital infrastructure and detailed analytics. Despite these stock challenges, which have now been resolved, the company captured a larger portion of a contracting clothing sector, though overall market conditions remain difficult. Total revenue for clothing, beauty, and homewares advanced by 17.5% to nearly £2bn compared to the prior year's hack-impacted figures.

M&S profits bounced back to £355m as clothing sales continued to recover from a major cyber-attack.

Chief Executive Stuart Machin remarked that the brand maintains strong health and broad appeal, though financial performance fell short of its absolute potential. Operational improvements are anticipated in the subsequent half-year as inventory levels normalise between core and seasonal merchandise. Meanwhile, the grocery division grew sales by nearly 14% to £5.2bn following the opening of seven new outlets and store modernisations, driven by a £50m investment in price competitiveness and quality for everyday essentials.

Additionally, the Ocado joint venture transitioned to a half-year profit of £25.6m, reversing a previous £3.1m loss, supported by a 16% revenue increase and greater delivery efficiency. The corporate group also plans to implement £120m in expenditure reductions across technology, logistics, and retail spaces during the current year to offset emerging operational expenses, including a £35m packaging levy.

Why it matters

This corporate performance demonstrates the long-term operational and financial disruption that large-scale cyber-attacks can inflict on major retail supply chains, forcing manual workarounds that persist long after digital systems are restored. The recovery highlights the resilience of diversified retail models, where strength in grocery divisions and joint ventures can offset lingering vulnerabilities in apparel and homeware segments.