Marks & Spencer has reported that profits more than doubled over the past six months, driven by a recovery from last year's cyber attack, although the company cautioned that it faces an "onslaught of cost headwinds."
The high street retailer has been buoyed by strong growth in its food business, which is performing "ahead" of plan. However, chief executive Stuart Machin said results from its fashion, home and beauty business "fell short of their potential," despite bouncing back from the impact of the cyber incident.
Cyber Attack Impact and Recovery
Last year, the retailer halted all online sales on its website for around six weeks and suffered empty shelves due to disruption to its logistics systems after hackers targeted the business around the Easter weekend. Bosses said recent sales and profits from its fashion, home and beauty business were still impacted by disruption to product availability due to the "long-tail impact" of the cyber incident. Store sales were also partly knocked by the long period of hot weather over the summer.
Financial Performance
On Wednesday, the company revealed that adjusted pre-tax profits lifted to £403.2 million for the 26 weeks to September 26, compared with £184.1 million a year earlier. However, this was lower than the same period in 2024, amid an impact from weaker fashion, home and beauty profits and higher costs. M&S said it has swallowed around £35 million of costs from increases to packaging taxes, pay and national insurance costs, and costs linked to disruption in the Middle East.
"Despite the onslaught of cost headwinds, we have remained focused on our ambitions and we are clear on our plan," said Mr Machin. "We enter the second half in a strong position, with a solid performance in October under our belts."
Sales Growth Across Divisions
M&S saw sales lift by 16.2% to £9.25 billion for the half-year to September. Its food operation reported a 13.9% jump in sales, benefiting from an 11.9% rise in volume sales as well as store openings and investments. Meanwhile, fashion, home and beauty sales increased by 17.5% year-on-year, supported by the online recovery following the cyber attack.
