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M&S Profit Plunges After Cyberattack as Retailer Details £136m Hit and £100m Insurance Payout

Management targets a return to normal by spring.

Overview

  • Underlying pre-tax profit fell 55% to £184.1m in the six months to 27 September, with reported profit dropping to £3.4m.
  • M&S booked £101.6m of cyber-related charges in the first half and expects about £34m more in the second half, taking the profit impact to roughly £136m.
  • The company recovered £100m through cyber insurance and lifted its cost-saving target to £600m.
  • Clothing, home and beauty sales fell 16.4% as online revenue slumped 42.9% and store sales dipped 3.4%, while food sales rose 7.8% and availability is improving.
  • The hack caused an estimated £324m in lost sales and involved theft of customer personal data, with home delivery restored in June and click-and-collect in August; M&S expects second-half profit at least in line with last year.