As it deals with the aftermath of last month’s ransomware assault, M&S has warned that its profitability could be affected by US $ 402 million next year.
After what it called a “highly sophisticated cyber incident,” the retail behemoth was forced to stop accepting online orders and has had trouble keeping shop shelves stocked.
The impact on the group’s operational profit for the current fiscal year, before mitigation, is estimated to be US $ 402 million. This will be mitigated by cost control, insurance, and other trading measures.
M&S in a statement said, “As a team, we have worked nonstop with partners and suppliers to stabilise operations and contain the incident, taking proactive steps to minimise the disruption for customers. We have discovered fresh and creative methods of working and are looking to take full advantage of the chance to quicken the rate of advancement of our technological transformation.”
The firm anticipates that “as we restart, then ramp up operations,” the online disruption will last throughout July and into June. It expects the second quarter to see higher stock management expenses.
