M&S Braces for USD402M Profit Hit Following Cyberattack
(MENAFN) Marks & Spencer (M&S), a major player in British retail, has revealed it expects a £300 million ($402 million) reduction in profits this year due to a “highly sophisticated” cyberattack that significantly impacted its digital platforms and delivery services.
The breach, which took place over the Easter weekend, led the retailer to suspend online orders and disrupted supply chains to physical stores and its grocery delivery partner, Ocado.
The company anticipates continued disruption “throughout June and into July” as it works to fully restore its online services.
“This has been a bump in the road,” CEO Stuart Machin stated. “We will come out of this in better shape, and continue our plan to reshape M&S.”
The cyberattack struck shortly after M&S reported strong annual financial performance.
“This attack interrupted a strong trading period,” Machin added. “We started the new financial year with sales growth ahead of budget across both businesses.”
Despite the incident, M&S stated it remains on solid financial footing, holding over £400 million in net funds.
The anticipated losses are expected to be partially mitigated by insurance claims, operational savings, and other recovery strategies.
The attack, attributed to the cybercriminal group Scattered Spider, also led to the compromise of some customer data, including personal information and purchase history.
This breach is part of a wider trend of cyberattacks targeting prominent UK retailers, with Harrods and the Co-op also recently affected.
M&S continues to be one of the UK's most prominent retailers, offering food, clothing, and home products both in-store and online.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
