• Analysis
M&S cyber-attack recovery takes more than a year as profits bounce back to £355m
Marks & Spencer reported half-year profits of £355m in the six months to 26 September, up from £3.4m a year earlier and ahead of expectations, more than a year after the cyber-attack that began over Easter 2025.
Website shutdown and manual ordering
The M&S cyber-attack recovery has stretched well past a year. The attack, which began over Easter 2025, forced the retailer to close its clothing and homewares website for more than six weeks.
- •With their usual technology out of action, M&S buyers had to estimate demand and place orders with suppliers unaided by data systems.
- •That manual ordering left some clothing categories short of everyday products over the summer, and online sales through the long hot summer carried higher fulfilment costs that diluted profitability.
- •Clothing and homewares sales and profit therefore remain below where they stood two years ago.
Sales across the group
Total sales across the food-to-fashion group rose 16.2% to £9.2bn in the half year.
- •Clothing, beauty and homewares sales climbed 17.5% to almost £2bn against the hack-affected period a year earlier.
- •Food sales rose almost 14% to £5.2bn, helped by seven new store openings along with expansions and refurbishments.
- •The company also invested £50m in keeping prices down and improving quality, gaining share in meat, dairy and fresh produce.
Ocado venture and cost plans
The Ocado joint venture swung to a half-year profit of £25.6m from a £3.1m loss a year before, as sales rose 16% and deliveries became more efficient.
M&S also expects to cut £120m in costs this year across technology, logistics and stores, including £35m related to a new packaging levy.
Chief executive's verdict
Chief executive Stuart Machin said the brand is healthy but the half-year results fell short of what the business should be delivering.
We are broadening our appeal and the brand is in good health, but the results fell short of their potential
Machin said the cyber-attack's impact lasted longer than expected but is now behind the company. M&S said availability has now recovered, creating a better balance between core and seasonal stock, and performance should improve in the second half.
