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Cyber Incident Victim: Marks and Spencer

Date:

Apr 2026

Location:

United Kingdom

Summary

Marks and Spencer experienced a cyber-attack that disrupted supply chains and ecommerce operations, leading to a significant profit downturn with statutory profit before tax falling 28.8% and adjusted operating profit declining from £491.8m to £444.5m. While total revenues rose 24.8% due to the Ocado Retail consolidation, underlying sales growth was only 1.9%, with food sales up 7% and fashion, home and beauty sales down 7.7%. The attack is estimated to have erased about one-third of profits, prompted staff bonus cuts, and caused wastage and markdowns. In response, the company has invested in supply chain modernisation, technology transformation, store rotation and plans to double its online fashion business while pursuing structural cost reductions.

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Description

In April 2025, Marks and Spencer experienced a cyber-attack that disrupted supply chains and ecommerce operations. The attack occurred during the first half of the financial year ending March 2026. It caused significant operational impact, leading to a temporary pause in online trading and systems access. The disruption affected both the supply chain and the online retail channels.

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The cyber-attack contributed to a profit downturn of 23.8% for the financial year, with statutory profit before tax falling 28.8% to £364.6 million. Revenues rose 24.8% to £17.4 billion, but this increase was largely due to the consolidation of Ocado Retail; underlying sales growth excluding Ocado was only 1.9%. Food sales grew 7% while adjusted operating profit fell to £444.5 million from £491.8 million due to wastage and stock markdowns linked to the attack. Fashion, Home & Beauty sales declined 7.7% because of the pause in online trading. Staff bonuses were cut as the company rebuilt after the incident.

Marks and Spencer described the year as a "year of two halves," noting a return to sales and profit growth in the second half. The company announced investments in supply chain modernisation, technology transformation, and store rotation. It plans to double its online fashion business by increasing supply chain capacity, open new stores, and pursue structural cost reduction to offset pay inflation and tax levies. CEO Stuart Machin highlighted food performance and expressed confidence in future growth, emphasizing continued investment in infrastructure, agility, and customer experience.

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