Marks & Spencer shares jumped around 4% on Wednesday, making it the top performer on the FTSE 100, even as the retailer grapples with the fallout from a significant cyber attack.
Investors reacted positively after M&S reported its most substantial annual profits since 2010, covering the 12 months to March. The upbeat earnings overshadowed warnings from management that the cyber incident could cost the business up to £300m, with store availability continuing to suffer in the aftermath.
By 2 pm, the FTSE 100 was marginally higher, up 0.03%.
Meanwhile, JD Sports slumped to the bottom of the index, with shares down over 8% following concerns about the impact of potential US tariffs on its business.
Marks & Spencer Posts Strong Results Despite Cyber Attack Setback
Marks & Spencer has shown impressive resilience in the face of a major cyber attack, reporting a 22% rise in adjusted pre-tax profits to £875.5 million for the year ending March 29, 2025.
Sales also climbed 6.1% to just under £14 billion, reflecting continued momentum across the business despite recent operational challenges.
However, the cyber attack—linked to “human error” by a third-party supplier—is projected to cost Marks & Spencer around £300 million in operating profits for the 2025/26 financial year. The breach disrupted online operations, especially in the fashion, home, and beauty divisions, and resulted in the theft of customer personal data.
The company revealed it held over £400 million in net cash reserves, stating it was “in the best financial health we’ve been in 30 years” prior to the cyber attack. M&S added that it is working to reduce the financial impact of the breach by half—to around £150 million—through a combination of insurance claims, cost-saving measures, and other mitigation efforts.
The results highlight that the cyber attack disrupted what had been a strong trading period for Marks & Spencer. Total sales rose 6% to £13.9 billion in the year to 30 March, with food sales climbing nearly 9% to £9 billion and fashion and homeware up 3.5% to £4.2 billion.
The company did not disclose how much sales have declined since the cyber incident.
However, after accounting for one-off charges—including a £248.5 million write-down on its Ocado Retail joint venture and £84 million in store closure and refurbishment costs—pre-tax profits dropped 24% to £511.8 million.
