British retailer Marks & Spencer revealed Wednesday that a M&S cyberattack will erase nearly one-third of its annual profits. The company now expects a £300 million ($403 million) impact on operating income for fiscal year 2025/26.
The breach caused widespread disruption across M&S operations. Food shelves emptied, and online sales ground to a halt during the Easter period. Despite solid overall growth, the retailer said the cyber incident will reduce group operating profit by 30.5%.
In its annual report, M&S disclosed that its unadjusted profit stood at £984.5 million as of March 29, 2025—a 17% rise year-on-year. However, the M&S cyberattack has severely dented the retailer’s momentum, knocking more than £1 billion off its stock market value.
Online disruptions are expected to continue into July. The company is working to stabilize digital operations while evaluating insurance claims and cost mitigation strategies.
CEO Stuart Machin addressed the issue during an earnings presentation. “This disruption allows us to fast-track our tech transformation,” he said. “We will now condense our two-year tech overhaul into just six months.”
The M&S cyberattack, which occurred over the Easter holiday, was described as “highly sophisticated and targeted.” Though the company has not confirmed ransom payments, Machin acknowledged the breach was linked to “human error.”
Retail analysts, including Lucy Rumbold of Quilter Cheviot, noted that the incident overshadowed otherwise strong results. “We now have a clearer picture of the profit impact,” she said, “but uncertainty around the attack’s duration remains.”
Shares of M&S edged up 0.68% despite the losses, signaling investor confidence in the retailer’s long-term outlook. Still, analysts warned of continued market vulnerability as cyber risks grow across the retail sector.
Recent attacks on Co-op, Harrods, and JD Sports underscore a broader threat to UK businesses. Many now classify cybersecurity breaches as one of the most serious risks to their operations.
The M&S cyberattack has become a turning point for the brand, forcing rapid innovation under pressure. How effectively M&S recovers will define its retail resilience moving forward.
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