M&S profits bounce back as it recovers from last year's cyberattack
Marks & Spencer's profits rebounded in the six months to late September as it recovered from last year's cyberattack, The Guardian and the PA news agency report. Food sales grew strongly. But the boss said clothing and home results fell short, and the firm warned of an onslaught of costs.
Reported profit before tax rose to £355 million in the six months to 26 September, from only £3.4 million a year before, The Guardian reports. That was better than expected.
On an adjusted basis, pre-tax profit rose to £403.2 million from £184.1 million a year earlier, PA reports in The Independent. That was still lower than the same period in 2024.
Total sales rose 16.2% to about £9.2 billion, The Guardian says. Food sales rose almost 14% to £5.2 billion as M&S opened seven new stores and spent £50 million keeping prices down.
The cyberattack began over Easter 2025 and shut the company's website for more than six weeks, The Guardian reports.
Clothing, beauty and home sales rose 17.5% to almost £2 billion, The Guardian says. But sales and profit in that arm stayed below two years ago because manual ordering after the hack left some everyday items short over the summer.
“We are broadening our appeal and the brand is in good health, but the results fell short of their potential and show there is a lot more to do,” said chief executive Stuart Machin, according to The Guardian. He said the hack's impact “lasted longer than we expected” but is now behind the firm.
“Despite the onslaught of cost headwinds, we have remained focused on our ambitions and we are clear on our plan,” Machin said, PA reports. M&S said it absorbed about £35 million of costs linked to packaging taxes, pay, national insurance and the Middle East.
M&S expects to cut £120 million in costs this year, The Guardian says. Its Ocado joint venture swung to a half-year profit of £25.6 million.
What we know: M&S profits rose sharply from the year before as food sales grew and online sales recovered.
What we don't: Whether clothing and home profits will return to levels seen before the hack.
Where outlets agree The Guardian and PA report M&S's half-year results and the recovery from the cyberattack.
Where they differ The cited reports agree on the key facts so far.