M&S Restarts Online Orders Following Cyberattack

Marks & Spencer has resumed its online services nearly two months after suffering a significant cyberattack.

The retailer announced that a “selection of our bestselling fashion ranges will be available for home delivery across England, Scotland, and Wales,” with plans to restore deliveries to Northern Ireland in the near future.

According to M&S, more fashion, home, and beauty items will be added daily, and they will soon reinstate options for click and collect, next-day delivery, nominated-day delivery, and international orders.

Following the news, shares of the company, which have been affected since the cyber incident began, saw an increase of 14p, or 3.97 percent, reaching 374p.

The company has indicated that the cyberattack is expected to result in a loss of approximately £300 million in operating profits for the year. M&S acknowledged that online trading had been significantly affected and is currently in a recovery phase.

Clive Black, an analyst at Shore Capital, estimated the weekly impact on clothing sales to be around £25 million, assuming no shift from online to in-store purchases. M&S derives about 30 percent of its £4.3 billion annual clothing sales from online transactions.

Stuart Machin, the chief executive of M&S, stated last month that he takes full responsibility for navigating the company through these challenges. “As the CEO, I am accountable for ensuring we transform this organization and manage through this disruption,” he remarked.

Despite the challenges, Machin expressed confidence that M&S’s recovery plan is “on track,” highlighting the need to focus on business fundamentals and achieve further growth and profitability. “We’ve made good progress on style, quality, and value, but now we must strengthen the backbone of our business,” he added.

The retail giant has invested years in rebuilding its market presence with improved pricing, enhanced product ranges, and a streamlined store network. The company reported a 22 percent increase in its preferred measure of profit—pre-tax profit before adjusted items—reaching £875.5 million for the year ending March, the highest figure in over 15 years. After accounting for a non-cash impairment related to Ocado Retail, the statutory pre-tax profit stood at £511.8 million, reflecting a 23.9 percent decrease from the previous year.

M&S’s group revenue rose by 6 percent to £13.8 billion during this period, bolstered by an 8.7 percent increase in food sales, which totaled £9 billion. Fashion, home, and beauty categories also saw a 3.5 percent uptick to £4.2 billion. Operating margins improved across both segments, with clothing and home achieving an 11.2 percent margin while food reached a 5.4 percent margin.

“We’re in the best financial condition we’ve been in for nearly 30 years,” Machin, who took over leadership in 2022, remarked, noting ambitions to double the size of the food business.

Analyst Black anticipates a strong recovery for M&S following the cyberattack.