In its outcomes for the 12 months to 29 March, the retailer supplied an replace on the influence of final month’s cyber-attack, which has left its on-line orders suspended and methods severely affected.
Its present estimate earlier than mitigation is a £300m hit to group working revenue for 2025/26, which “can be decreased via administration of prices, insurance coverage and different buying and selling actions”, the corporate stated. Prices immediately referring to the incident can be introduced individually as an adjusting merchandise.
In trend, dwelling and sweetness, gross sales have been “closely impacted by” the choice to pause on-line buying from 23 April, nonetheless shops have “remained resilient”.
The corporate expects on-line disruption to proceed all through June and into July. This may even imply elevated inventory administration prices within the second quarter.
Within the 12 months earlier than the cyber-incident, which was disclosed on 22 April, complete income elevated 6% 12 months on 12 months to £13.8bn.
Revenue earlier than tax and adjusting objects jumped 22.2% to £875.5m, the best in over 15 years. Statutory revenue earlier than tax was down 23.9% at £511.8m, on account of £248.5m non-cash impairment in Ocado.
Style, dwelling and sweetness gross sales had been up 3.5% to £4.2bn, with like-for-like gross sales up 4.4%. The corporate highlighted sturdy Q2 and This autumn gross sales, pushed by seasonal marketing campaign efficiency and funding in improved buyer expertise on-line.
CEO Stuart Machin stated: “We began the brand new monetary 12 months as we completed the final, with gross sales development forward of funds throughout each companies. Over the previous couple of weeks, we now have been managing a extremely refined and focused cyber-attack, which has led to a restricted interval of disruption.
“It has been difficult, however it’s a second in time, and we at the moment are centered on restoration, with the goal of exiting this era a a lot stronger enterprise. There is no such thing as a change to our technique and our longer-term plans to reshape M&S for development and, if something, the incident permits us to speed up the tempo of change as we draw a line and transfer on.”
