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Marks and Spencer has seen its adjusted profit before tax fall to £184.1m in the first half of the year ended 27 September 2025, down from £413.1m in the same period last year as a result of the cyber attack it suffered in April.
The company also revealed that it had received a £100m insurance payout which it included in its PBT figure. CEO Stuart Machin said that the company expects profits in the second half of the year to be in line with the previous year.
Despite the disruption M&S saw its total sales rise 22.1% to £8bn and its food sales grew 7.8%. However, its food margin declined from 5.1% to 2.0% due to costs involved in markdowns and stock management during the cyber incident.
Most damagingly, the company’s fashion, home and beauty sales declined 16.4% as a result of the pause in online sales from April to early June, while store sales suffered from lower product availability.
The retailer’s profits took an additional hit of £50m due to costs in meeting demands of the EPR packaging levy.
M&S opened 15 new or renewed stores in H1 and is planning on opening more than 20 new or renewed stores in the second half of the year.
Machin said: “The first half of this year was an extraordinary moment in time for M&S. However, the underlying strength of our business and robust financial foundations gave us the resilience to face the challenge and deal with it. We are now getting back on track.
“Today, we are regaining momentum. In food we continue to outperform the market, with three years of consecutive monthly volume growth. Our obsession with quality and innovation is paying off , underpinned by a relentless focus on trusted value, with value ranges growing year-on-year. In fashion, home and beauty, the recovery curve has been slower than food, but we are making progress every day.”
He added: “Our stronger style credentials mean our fashion is resonating and we continue to lead the market on quality and value . We are determined to help our customers have a fantastic Christmas with exceptional service and what I truly believe is the best Christmas food and fashion in the market.
“Thank you to our colleagues for their hard work, our suppliers for their support and our customers for their loyalty. We are grateful to everyone who shops with us, and if you haven’t yet, please do. To date we have achieved meaningful progress, but what’s exciting is that there is so much more to do and so much opportunity ahead of us. It’s all to play for.”
