Marks and Spencer Profit Falls After Last Year Cyberattack

Marks & Spencer Group Plc has announced a significant drop in annual profit, citing a major cyberattack last year that disrupted its online operations and supply chain. Despite the financial setback, the British retailer said it expects to return to profit growth in the current financial year, surpassing pre-attack levels.

The company reported on Wednesday that adjusted pretax profit fell 23.8 percent to 671.4 million pounds for the year ended March 29. Revenue declined to 13.8 billion pounds. The retailer attributed the slump primarily to a cyber incident around the Easter weekend last year, which forced it to suspend all online sales for approximately six weeks and caused empty shelves due to logistics disruptions.

The attack particularly impacted the fashion, home, and beauty division, where sales fell by 7.7 percent. Profits in that category fell by more than half following markdowns and clearance of excess seasonal stock. The company had previously estimated the cyberattack would reduce annual profit by about 136 million pounds.

In contrast, the company's food business reported a 7 percent increase in sales for the year. Chief Executive Stuart Machin said the underlying...