Cyber attack costs Marks & Spencer 300 million pounds

The effects of the recent cyber attack will continue to be felt into July, Marks & Spencer warns. The British retailer expects an impact of some 300 million pounds (350 million euros) on operating profit.

Financial health

Its full-year results for last year were still excellent, with sales up 6 % to 13.9 billion pounds (16 billion euros) and operating profit up 22 % to 875.5 million pounds (one billion euros). The company says it is in its best financial state for thirty years, but those figures were overshadowed by the major impact of a hack the retailer fell victim to in late April.

Next year, operating profits will take a 300 million pounds hit as a result of that cyber attack, the company expects. Food sales suffered from limited availability and the disruption to online operations may continue to be felt into July. Logistics costs rose and there was also more wastage. The retailer is now making a virtue of necessity to further accelerate its digital transformation.

Apart from the lost sales and high costs, the company also faces a multi-million pound lawsuit as Scottish customers have united to file a class action claim.