M&S profits plunge 55% after major cyberattack cripples online operations

British retailer Marks & Spencer reported a sharp drop in half-year profits after a devastating cyberattack disrupted its online business and logistics systems, leading to major sales losses and one of the UK’s worst corporate hacks

Marks & Spencer (M&S) has reported a significant 55% decline in half-year profits following a major cyberattack that brought its online operations and supply chains to a standstill. The retailer’s underlying pretax profit fell to £184.1 million ($240 million) for the six months ending September 27, down from the previous year’s strong performance.

The cyber incident, which occurred over the Easter weekend, forced M&S to suspend online orders for six weeks, causing a 40% drop in home and fashion sales. The company estimates the breach led to £324 million in lost sales, though an insurance payout of £100 million has partially offset the losses. The attack is expected to dent full-year profits by around £136 million, including an additional £34 million impact in the second half.

Fashion business hit hard, food sales steady

M&S’s fashion division suffered the biggest setback, with overall sales falling 16.4% and online sales plunging 42.9% in the first half. In contrast, its food segment showed resilience, helping the retailer maintain stability amid the disruption.

The company confirmed that hackers accessed customer data, including names, email addresses, postal details, and birth dates. Chief Executive Stuart Machin described the period as “an extraordinary moment in time” and assured that operations are “now getting back on track.”

Home deliveries resumed in June, followed by the restart of click-and-collect orders in August. The incident adds to a growing wave of cyberattacks on UK retailers this year, including breaches at Harrods and Co-op, which are under ongoing police investigation.