Marks & Spencer (M&S) is preparing to disclose the full financial impact of the cyber attack that forced the retailer to suspend its online operations earlier this year. The incident, which occurred around Easter, led to the temporary closure of its e-commerce platform for approximately six weeks.
The company is expected to publish its half-year results on Wednesday, 5th November, covering the six months to September. Industry observers anticipate that the retailer will report broadly flat revenues for the period, despite the loss of online sales.
The cyber attack disrupted a period of otherwise strong performance for M&S, which had recently seen growth across its food, clothing, home, and beauty divisions following its turnaround strategy under chief executive Stuart Machin. Although the company’s shares remain close to a nine-year high, investors are expected to seek clarity on how much the incident affected sales momentum and operational progress.
The attack caused significant disruption to logistics and led to temporary stock shortages in stores. M&S also confirmed that hackers accessed some customer data, including names, email and postal addresses, and dates of birth.
In May, Stuart Machin said the incident had been triggered by human error and was expected to cost the retailer around US $ 380 million, before accounting for insurance recoveries or cost-cutting measures. Shareholders are likely to watch for any revisions to this estimate, particularly regarding potential insurance compensation.
While M&S experienced a rebound in online traffic after restoring its website, competitors such as NEXR reportedly gained market share during the outage, indicating that some customers may have switched brands during the disruption.
Russ Mould, investment director at AJ Bell, observed that investors remain confident in the brand’s strength and recent operational improvements, viewing the interim results as a key test of customer confidence.
Analysts forecast that M&S will report adjusted pre-tax profits of around US $ 141 million for the first half of the year, reflecting the costs of the cyber incident. The company is still expected to achieve profits between US $ 760 million and US $ 870 million for the full year, assuming recovery in the second half.
Shareholders will also be monitoring the retailer’s exposure to wider cost pressures, including rising labour expenses and recent tax changes introduced in April. M&S has been pursuing cost-efficiency measures and investing in store modernisation, and the results announcement is expected to outline whether these initiatives have been delayed or accelerated in response to the cyber attack.
