TL;DR: Marks & Spencer is projecting a return to profit growth after suffering a significant 24% drop in profits due to a cyberattack that disrupted sales and operations. Despite challenges from rising costs and regulatory pressures, the retailer aims to enhance product availability and service this year.
Marks & Spencer (M&S), a staple of UK high streets for the past 142 years, has revealed its forecast for profit growth this year after a sharp decline of 24% in profits for 2025/26. The retailer was significantly impacted by a disruptive cyberattack that compromised sales and margins. Now, as M&S embarks on its 2026/27 fiscal year, it enters with a comprehensive recovery plan and a robust balance sheet, committed to improving product availability and service levels.
“Profit growth is expected to resume versus 2024/25,” the company stated in its latest announcement. However, the outlook for the current year also considers the higher costs of fuel, freight, and numerous input expenses alongside persistent government tax levies and regulatory challenges facing the retail sector.
In an effort to mitigate these increased costs, M&S aims to enhance its buying practices, reinvest in delivering value to drive volume, and implement savings through a structural cost-reduction programme. The repercussions of the cyberattack were steep, as M&S had to pause online clothing orders for seven weeks and suspend click-and-collect services for nearly four weeks. The attack also led to additional waste and logistics costs, further hitting the bottom line.
CEO Stuart Machin remarked, “We were laser focused on our customers, worked incredibly hard to recover our business, and we came out stronger.” Despite an adjusted profit before tax of £671.4m for the year ending March 28—down from £881.1m in the previous year—the second half of the year saw a modest profit growth of 4.1% compared to the prior year.
Interestingly, while food sales experienced a healthy 7% rise and M&S gained market share in that division, the fashion and home categories suffered a decline of 7.7%. Machin noted that the recovery in fashion, home, and beauty has taken longer than anticipated, but he remains optimistic about strong growth potential in the future.
However, it’s worth noting that retailers, including M&S, are grappling with what Machin describes as a “triple whammy” of challenges: increased taxation, a heavier regulatory burden, and the ongoing impact of global conflicts. All of this has led to a decline in M&S shares by 11% over the past month, a trend that could raise eyebrows among investors looking for stability.
In a world where a familiar name like M&S is contending with cyber threats and rising costs, one has to wonder: is anyone safe? If we didn’t know better, we’d think we were in a dystopian novel where our shopping habits are pursued by sinister hackers rather than being just an excursion to the local store. One can’t help but chuckle (or cry) at how technology, often viewed as a friend, has turned hostile.
Interestingly, M&S isn’t the only retailer affected by cybersecurity issues; many companies have experienced similar breaches, underscoring the ongoing challenges presented by our increasingly digital landscape. With a strong consumer base and deep-rooted history, M&S may just have the resilience to weather these storms, but it’s clear that vigilance will be key in navigating the evolving retail landscape.
For further details, you can view the original report on RTÉ.
