# Marks & Spencer Recovers from Cyber-Attack as Profits Reach £355m Retailer overcomes lingering supply chain disruptions caused by a major website hack. - **Source:** [Business | The Guardian](https://www.theguardian.com/uk/business) - **Published:** 2026-11-04 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/532d33d0-c381-4681-8ffb-4af816f3d143 ## Cyber-Attack Impact Duration Marks & Spencer experienced a significant cyber-attack starting Easter 2025, forcing a six-week website shutdown. The incident caused prolonged operational disruptions, specifically affecting clothing and homeware divisions. Despite the recovery, the retailer confirmed that the negative impact of this security breach persisted for over a year, hindering overall sales potential. ## Financial Performance Rebound The company reported a profit recovery to £355m for the six months ending 26 September, a sharp increase from £3.4m the previous year. Total group sales rose 16.2% to reach £9.2bn. While these results exceeded analyst expectations, performance in clothing and homeware segments remains below levels recorded two years ago. ## Manual Ordering Operational Challenges Availability was constrained because buyers had to manage demand and supplier orders without standard technology tools. This manual process led to insufficient stock levels in specific clothing categories during the summer months. The transition back to automated systems was slower than anticipated, directly impacting the retailer's ability to meet consumer demand. ## Profitability and Fulfillment Costs Profitability within the clothing arm was diluted by a higher mix of online sales, which carry increased fulfillment costs. Furthermore, the shift toward online shopping during a long summer season placed additional pressure on margins. Management noted that these specific logistical challenges are now resolved, allowing for better inventory balance moving forward. ## Food Division Growth Drivers The food business acted as a primary growth engine, with sales increasing nearly 14% to £5.2bn. Marks & Spencer expanded its footprint by opening seven new stores and refurbishing existing locations. A £50m investment in price competitiveness and quality improvements helped the retailer gain market share in meat, dairy, and fresh produce. ## Ocado Joint Venture Turnaround The Ocado joint venture achieved a significant financial turnaround, reporting a half-year profit of £25.6m compared to a £3.1m loss in the previous year. This improvement was driven by a 16% rise in sales and enhanced delivery efficiency. These results contributed positively to the group's overall performance during the reporting period. ## Strategic Cost Reduction Targets Marks & Spencer aims to cut £120m in costs throughout the current year across technology, logistics, and store operations. These savings are intended to offset rising operational expenses, including a £35m packaging levy. The company continues to focus on efficiency gains to maintain momentum despite challenging market conditions in the retail sector. ## Future Outlook and Stability CEO Stuart Machin stated that the brand is in good health, though results still fell short of full potential. With availability issues resolved, the company expects improved performance in the second half of the year. The focus remains on balancing core and seasonal stock to navigate a currently declining clothing market environment. ## Sources covering this story - https://www.theguardian.com/business/2026/nov/04/m-and-s-recover-from-cyber-attack-profits-bounce-back — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._