Marks & Spencer (M&S) is set to provide an update to shareholders on 20 May regarding its recovery from a major cyber-attack that severely impacted sales and profitability last year. The incident, which occurred around the Easter weekend in 2025, forced the retailer to halt online sales for approximately six weeks and caused significant disruption to its logistics systems, leading to empty shelves in stores.
Financial Impact of the Cyber Attack
The company previously stated that the cyber-attack would reduce its annual profits by about £136 million. Of this total, £34 million affected the final six months of its financial year. M&S is anticipated to report a pre-tax profit of £654 million for the year ending 28 March, representing a 25 per cent decline from the £875.5 million recorded a year earlier. This marks a substantial blow to the retailer's financial performance, which had been showing signs of recovery prior to the attack.
Recovery and Future Outlook
While analysts predict a profit rebound for the current financial year, concerns persist over inflation, a subdued fashion market, and political uncertainty. These factors have contributed to the company's shares reaching a one-year low. The retailer has been working diligently to restore its systems and regain customer trust, but the road to full recovery remains challenging.
M&S has implemented enhanced cybersecurity measures and is investing in technology to prevent future incidents. However, the broader economic environment continues to pose risks, with consumer spending under pressure and the retail sector facing headwinds. The upcoming shareholder update will provide further insight into the company's progress and strategic direction.
