Marks and Spencer posts half-year profit of 355 million pounds despite lingering cyber-attack effects

Marks and Spencer reported half-year profits of 355 million pounds for the period ending 26 September 2026. This figure represents a sharp rise from the 3.4 million pounds reported in the same period last year and exceeded expectations set by City analysts.

The retailer’s results reflect a partial recovery from a cyber-attack that began over Easter 2025. The incident forced the company to shut down its website for more than six weeks. Although the digital platform is back online, the disruption to supply chains continued to affect the clothing and homewares divisions throughout the summer months.

Group sales increased by 16.2 percent to reach 9.2 billion pounds. However, sales and profits in the clothing and homewares sector remained below levels seen two years prior. The company stated that buyers were forced to forecast demand and place supplier orders manually without their standard technology. This process led to shortages in everyday clothing items during the hot summer weather.

Stuart Machin, the chief executive, described the brand as healthy while noting that results had not yet reached their full potential. He attributed part of the profit pressure to higher online sales during the summer, which carry greater fulfillment costs. Machin stated that while the attack’s effects persisted longer than anticipated, they are now behind the company.

Sales in clothing, beauty, and homewares rose by 17.5 percent to nearly 2 billion pounds. The company reported an increased market share in the shrinking clothing sector despite the stock availability issues. The retailer expects performance to improve in the second half of the year as product availability is restored and the balance between core and seasonal lines improves.

The food business drove overall performance above forecasts, with sales climbing almost 14 percent to 5.2 billion pounds. The group opened seven new stores and refurbished existing locations. A 50 million pound investment in lower prices and improved quality helped the company gain share in meat, dairy, and fresh produce. The joint venture with Ocado also returned to profitability, earning 25.6 million pounds compared with a 3.1 million pound loss a year earlier, aided by a 16 percent increase in sales and better delivery efficiency.

Marks and Spencer expects to cut costs by 120 million pounds this year across technology, logistics, and stores. These savings will help offset additional expenses, including a 35 million pound charge for a new packaging levy.