Marks & Spencer (M&S) has revealed that a sophisticated cyberattack will result in an estimated £300 million ($403 million) loss in operating profit, with disruptions expected to continue into July 2025. The British retail giant, which operates 565 stores and employs 64,000 people, announced that the attack has significantly impacted its online operations, particularly in the clothing, home, and beauty division.
The cybersecurity breach has temporarily shut down online sales, caused product shortages on food shelves, and wiped over £1 billion off M&S’s market value. Despite the setback, in-store sales have remained resilient, while the online segment continues to suffer. M&S stated that its online shopping services will remain suspended throughout June, with gradual recovery and full ramp-up expected by mid-summer.
In its food division, the retailer faced challenges due to reduced availability, increased waste, and higher logistics costs as operations reverted to manual processes. M&S has since reported improved food sales and is actively working to offset losses for the 2025/26 fiscal year through cost management, insurance claims, and strategic trading actions.
The company’s share price fell 3.4% in early trading on Wednesday, compounding the 13% drop since the cyberattack was first reported. However, M&S has pledged to use this crisis as a catalyst to accelerate its digital transformation and strengthen its technology infrastructure.
M&S CEO Stuart Machin described the incident as a “bump in the road,” expressing confidence that the company will emerge stronger. He emphasised the resilience of the brand, highlighting customer support and the retailer’s 140-year legacy of overcoming challenges.
The cyberattack on M&S comes amid a wave of ransomware incidents across the UK, with organisations like the British Library, Harrods, and the London Underground also recently targeted. Google recently warned of a broader trend, stating that the same group behind these attacks is now targeting U.S. companies.
While the attack has overshadowed M&S’s recent success, the retailer reported a 22.2% increase in adjusted pre-tax profit to £875.5 million, its best performance in over 15 years. Annual sales grew by 6.1% to £13.9 billion, with food sales up 8.7% and clothing, home, and beauty up 3.5%, as the brand continues to gain market share across categories.
