Marks & Spencer faces a £ 300m hit ($ 403m) in the current financial year’s operational profits by a cyberattack that still disturb the sales and the functions of the company.
With cost savings and insurance payments, Marks & Spencer will try to mitigate the impact on Wednesday (21.5.2025). Online clothing and home clothing orders, which correspond to sales of over £ 3m a day and have been suspended for more than three weeks, they will be interrupted until July.
This is a major blow to a business that implemented the recovery plan of the CEO Stuart Machin, recording the highest pre -tax profits of the last 15 years during the last financial year that ended before the attack.
Customers bought more groceries and the brand has shaken her reputation for bad clothes. Although M&S has spoken of a “hit on the road”, the effects have increased since it announced for the first time that it was facing an incident in cyberspace on April 22, forcing it to stop the intact payments and creating gaps on the shelves, as it puts out.
Last week, the company said that some personal customer data were stolen. Food sales have been affected by reduced availability, although the situation is improving. The company also suffered additional waste and logistics costs as it moved to manual procedures, which affected the profit.
Marks & Spencer shares have fallen by 10% after the attackalthough they have still increased by 34% in the last year until Tuesday closes.
A cybercrime gang known as “Dragonforce” took responsibility for the M&S hack, as well as for other attempts at the Co-op grocery and the Harrods luxury department store.
The team told Bloomberg that it had been attacking its associates to get money from the victims and plans to hit the UK retail sector again, saying recent violations were “only the beginning”.
M&S announced pre -tax profits of £ 876m for the financial year ended in Marchsurpassing analysts’ estimates. The company said it is sure of medium -term growth prospects and increases its part of 20%.