UPDATE 2-M&S expects profit recovery after cyber hack-driven slump

The 142-year-old M&S, one of the biggest names on the UK high street, said it entered its 2026/27 year with a clear plan and a strong balance sheet and ‌was focused on delivering further improvements to product availability and service levels. "Profit growth is expected to ‌resume versus 2024/25," it said on Wednesday.

British retailer Marks & Spencer forecast a return to profit growth this year after it slumped 24% in 2025/26, hit by ‌a disruptive cyberattack that dented sales and margins. The 142-year-old M&S, one of the biggest names on the UK high street, said it entered its 2026/27 year with a clear plan and a strong balance sheet and ‌was focused on delivering further improvements to product availability and service levels.

"Profit growth is expected to ‌resume versus 2024/25," it said on Wednesday. M&S said its outlook for the current year takes account of higher fuel, freight and input costs and continued government tax levies and regulatory headwinds for the sector.

It would mitigate these through improved buying, reinvestment in ⁠value ​to drive volume, and ⁠savings from its structural cost reduction programme. ONLINE CLOTHING ORDERS SUSPENDED

The cyberattack meant M&S was forced to suspend online clothing orders for ⁠seven weeks and click-and-collect services for nearly four. Clothing and food availability in stores was also hit, while additional waste ​and logistics costs were incurred. "We were laser focused on our customers, worked incredibly hard to recover ⁠our business, and we came out stronger," CEO Stuart Machin said.

The group made adjusted profit before tax of £671.4 million in the ⁠year ​to March 28, down from £881.1 million in 2024/25. Second half profit grew 4.1% versus the previous year. M&S said costs related to the cyber hack were £131.3 million.

While food sales rose 7.0% and the ⁠division grew market share, sales in fashion, home and beauty slid 7.7%. Machin said recovery in FH&B has ⁠taken longer, "but there is strong ⁠growth potential."

But he added that "retailers face a triple whammy of headwinds with increased taxation, a greater regulatory burden and ongoing global conflict". Shares in M&S have ‌fallen 11% over ‌the last month.