Marks & Spencer reported profits of £355m for the six months to September, rebounding from just £3.4m a year earlier, but said the effects of a cyber-attack that began over Easter 2025 and shut its website continued to hurt clothing sales more than a year on.
The retailer said sales and profit from its clothing and homewares arm remained below two years ago as “availability was constrained due to the longer than expected impact of manual ordering processes following the incident, while profitability was diluted by an increased mix of online sales which have higher fulfilment costs”.
The attack forced M&S to close its website for more than six weeks, leaving its team of buyers to calculate demand and place orders with suppliers without their usual technology. Chief executive Stuart Machin said the manual ordering meant the company did not stock enough everyday products in some clothing categories over the summer. “We are broadening our appeal and the brand is in good health, but the results fell short of their potential and show there is a lot more to do,” he said.
Machin described the impact of the cyber-attack as having “lasted longer than we expected”, but added: “That’s now behind us.” The company said availability problems were resolved and it had been able to take a bigger share of a declining clothing market, but “market conditions remain challenging”.
Total sales across the group rose 16.2% to £9.2bn in the half year. Clothing, beauty and homewares sales increased 17.5% to almost £2bn compared with the same period last year, when sales were affected by the hack. M&S expects performance to improve in the second half, with availability now recovered “creating a better balance between core and seasonal stock”.
The food business powered ahead, with sales rising almost 14% to £5.2bn as M&S opened seven new stores. M&S said it was gaining share on frequently bought items after investing £50m in keeping prices down and improving quality. The group’s Ocado joint venture swung to a half-year profit of £25.6m, from a loss of £3.1m a year before, as sales rose 16% and delivery efficiency improved.
M&S said it expected to cut £120m in costs this year across technology, logistics and stores, partly offsetting new costs including £35m related to a packaging levy.
Analysis
Why This Matters
- The cyber-attack’s persistent effects show how a prolonged website outage can disrupt supply chains and sales even after technical recovery, offering a case study for retailers.
- M&S’s rebound signals underlying brand strength but highlights operational vulnerabilities that may affect investor confidence.
- The company’s cost-cutting plans and food business growth are key to sustaining profit recovery in a tough retail market.
Background
M&S is a major UK retailer. The cyber-attack that began over Easter 2025 forced it to shut its clothing and homewares website for more than six weeks, leading to manual ordering processes that disrupted stock availability for over a year. The company’s half-year results for the period to 26 September 2026 showed a dramatic profit recovery, though clothing sales were still constrained.
What to Watch
- Whether clothing sales return to pre-attack levels in the second half of the financial year, as availability normalises.
- How the £120m cost-cutting programme affects margins and service quality, especially alongside the new packaging levy.
- The trajectory of the Ocado joint venture, which turned profitable for the first time.
Checked
12 claims in this story checked against 1 source: 12 supported.
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- SupportedM&S profits were £355m for the six months to September, up from £3.4m a year earlier.UK news | The Guardian: “The retailer said profits bounced back to a better than expected £355m in the six months to 26 September from only £3.4m a year before”
- SupportedThe cyber-attack continued to hurt clothing sales more than a year later.UK news | The Guardian: “a devastating cyber-attack that shut down its website last year continued to hurt clothing sales over the summer, more than a year after the hack.”
- SupportedThe attack began over Easter 2025.UK news | The Guardian: “The attack, which began over Easter 2025, forced it to shut its website”
- SupportedM&S said clothing and homewares availability was constrained by the longer-than-expected impact of manual ordering, while higher online sales diluted profitability.UK news | The Guardian: ““availability was constrained due to the longer than expected impact of manual ordering processes following the incident, while profitability was diluted by an increased mix of online sales which have higher fulfilment costs””
- SupportedM&S buyers had to calculate demand and order from suppliers without their usual technology.UK news | The Guardian: “its team of buyers had to calculate demand and make orders to suppliers without the help of their usual technology and detailed information last year.”
- SupportedMachin said the cyber-attack’s impact lasted longer than expected, but was now behind M&S.UK news | The Guardian: “He said the impact of the cyber-attack “lasted longer than we expected” but he added: “That’s now behind us.””
- SupportedTotal group sales rose 16.2% to £9.2bn in the half year.UK news | The Guardian: “Total sales over the half year across the food to fashion group rose 16.2% to £9.2bn.”
- SupportedClothing, beauty and homewares sales rose 17.5% to almost £2bn compared with the same period last year.UK news | The Guardian: “Clothing, beauty and homewares sales rose 17.5% to almost £2bn in the half year compared with the same period last year, which was affected by the hack.”
- SupportedM&S expected performance to improve in the second half as availability recovered.UK news | The Guardian: “Performance is expected to improve in the second half as M&S said availability has now recovered “creating a better balance between core and seasonal stock”.”
- SupportedFood sales rose almost 14% to £5.2bn in the half year.UK news | The Guardian: “its food business powered ahead, increasing sales by almost 14% to £5.2bn in the half year”
- SupportedThe Ocado joint venture swung to a half-year profit of £25.6m from a £3.1m loss, with sales up 16% and delivery efficiency improved.UK news | The Guardian: “The group’s Ocado joint venture also swung to a half-year profit of £25.6m from a loss of £3.1m a year before as sales rose 16% and it improved the efficiency of its deliveries”
- SupportedM&S expected to cut £120m in costs this year, partly offsetting new costs including £35m related to a packaging levy.UK news | The Guardian: “M&S said it expected to cut £120m in costs this year across technology, logistics and stores. It said this would partly offset new costs, including £35m related to a new packaging levy.”