Marks & Spencer in ‘best financial health for 30 years’ but cyber attack cost bites deep

In its full year result for the 52 weeks to March 29, 2025, Marks & Spencer said it would lose an estimated £300m as a result of the cyber-attack which has forced it to halt online orders and has led to availability issues on shelves at certain stores.

Profit before tax and adjusting items was up 22.2% at £875.5m for the period, the highest level in over 15 years for M&S.

Food sales jumped 8.7% in the period to £9bn, with operating profits of £484.1m. Fashion, home and beauty sales were up 3.5% to £4.2bn, with adjusted operating profit of £475.3m.

International sales were down 7.1% to £700m, while profits slipped to £46.3m, while losses on the Ocado Retail joint venture improved to £28.7m.

M&S reported increases in food volume and market share for the last three years with like-for-like sales up 8.6%, while fashion, home and beauty like-for-likes were up 4.4%.

During the period, M&S reduced £120m in costs from the business with the ambition of saving £500m by 2027/28. The retailer said it also increased capital investment to £600-650m.

Chief executive Stuart Machin said: “Three years ago, we introduced our Reshaping M&S for Growth plan with the objective of protecting the magic of M&S and modernising the rest. Executing that strategy has delivered a third consecutive year of growth in sales and market share, profit and improving return on capital.

“Our continuous investment in quality, value and innovation is paying off”

“Disciplined capital allocation and a much stronger balance sheet have put M&S on a robust financial footing, increasing resilience and creating capacity for future growth. M&S has net funds of over £400m and we are in our best financial health for nearly 30 years.

“Our food business had another strong year as more customers chose to fill their trolleys with M&S food, more often.

“Our continuous investment in quality, value and innovation is paying off. We’ve outperformed the market over the past three years and I’m confident we will continue the momentum and grow a bigger, fresher food business.

“In fashion, home and beauty, our authoritative lead in quality and value perception and much improved style credentials has broadened appeal and grown market share. This renewed strength in product gives us the foundation to drive future growth through transforming our end-to-end supply chain and accelerating online. Consistent market outperformance over the past three years demonstrates the improvements we’ve made and I’m confident that with focused execution, we can deliver our plan.

 “We are now focused on recovery, with the aim of exiting this period a much stronger business”

“Overall, last year was another year of strong performance, and there are so many opportunities still ahead of us. As outlined at last year’s Capital Markets Day, we will continue our plan to invest in our key growth areas: Store rotation, supply chain and technology”.

“We started the new financial year as we finished the last, with sales growth ahead of budget across both businesses.

“Over the last few weeks, we have been managing a highly sophisticated and targeted cyber-attack, which has led to a limited period of disruption. We have tackled this head-on with incredible spirit, teamwork and deep sense of responsibility as we prioritised serving our customers.

“It has been challenging, but it is a moment in time, and we are now focused on recovery, with the aim of exiting this period a much stronger business. There is no change to our strategy and our longer-term plans to reshape M&S for growth and, if anything, the incident allows us to accelerate the pace of change as we draw a line and move on.

“Over the last 140 years, M&S has overcome many challenges—testament to the longevity of this brand. This incident is a bump in the road, and we will come out of this in better shape and continue our plan to reshape M&S for customers, colleagues and shareholders.

“I would like to thank all of our colleagues and supplier partners for their hard work and dedication and, importantly thank our customers. They have been unwavering in their support, and we are incredibly grateful for their patience and trust in M&S.”