Marks And Spencer Group Plc (M&S) has reported a dramatic decline in its first-half profit, largely from the financial impact arising from a recent cyberattack. The company, disclosed their half-year results on Wednesday, revealing how the one-off costs from the cyber incident sharply affected their earnings performance.
According to the retail group, profit before tax plunged 99.1 percent to £3.4 million for the 26 weeks ending in the first half of the financial year, compared to £391.9 million during the same period last year. Attributable profit after tax also dropped 97.8 percent to £6.2 million, down from £282.1 million a year ago. Basic earnings per share followed a similar trend, falling 97.9 percent to 0.3 pence from 14.0 pence.
M&S stated that the severe profit decline was driven by adjusting items amounting to £167.8 million, of which £101.6 million was directly linked to the cyberattack that took place during the first few weeks of the financial year. In comparison, the company recorded just £15.9 million in adjusting items last year. These one-time charges dented the retailer’s bottom line.
Marks And Spencer’s Sales Growth Resilient Despite Operational Disruptions
Despite the disruption, M&S maintained its resilience in sales performance. Group revenue surged 22.5 percent to £7.942 billion from £6.481 billion a year earlier. Group sales also climbed 22.1 percent to £7.965 billion, reflecting strong consumer demand across several categories.
In terms of business segments, Food sales saw a notable rise of 7.8 percent year-on-year, reaching £4.532 billion. However, the Fashion, Home & Beauty segment recorded a 16.4 percent decline, with sales falling to £1.70 billion. M&S attributed this decrease to a temporary suspension of online operations following the cyberattack, which occurred between late April and early June. The company noted that online services gradually recovered over the summer months.
International sales were also down, falling 11.6 percent to £255.8 million. Meanwhile, adjusted profit before tax came in at £184.1 million, down from £413.1 million last year. Adjusted basic earnings per share dropped to 6.6 pence from 14.7 pence. The retailer explained that profits in both its Food and Fashion, Home & Beauty divisions were affected by the trading disruption caused by the cyberattack, though this was partially offset by insurance income.
Outlook Remains Cautiously Optimistic
Marks And Spencer expects second-half profits to remain at least in line with last year’s performance. The company noted that the residual impact of the cyber incident is gradually easing and should continue to diminish in the coming months. Nonetheless, M&S acknowledged that the consumer environment remains “as uncertain as ever” heading into the second half of the financial year.
In a sign of confidence, M&S declared an interim dividend of 1.2 pence per share—an increase of 20 percent from last year’s 1 pence. The dividend will be payable on January 9, 2026, to shareholders on record as of November 28, 2025.
Despite the temporary setback from the cyberattack, Marks And Spencer remains optimistic about recovery. The company expressed confidence that it will be “back on track” by the end of the financial year, with operational stability expected to return as it moves past the aftermath of the incident.