Marks and Spencer has revealed that the fallout from this year's cyber attack is expected to reach a total of £136m by 2026.
The high street giant was compelled to halt online orders for nearly two months over the summer, with its click and collect service suspended for close to four months after the April incident. The group has recovered £100m in insurance income related to the incident.
Chief executive Stuart Machin described the past six months as an "extraordinary moment in time" for M&S. He stated: "Today, we are regaining momentum... Our plan to reshape M&S for long-term sustainable growth is unchanged, our ambitions are undimmed, and our determination to knuckle down and deliver is stronger than ever."
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The firm anticipates being "recovered and back on track" by spring next year, forecasting profits in line with last year over the next six months despite the lingering impact of the attack, as reported by .
The £136m cost includes an £83m charge for immediate response and recovery efforts, while £18.6m has been allocated to specialist legal and professional services support.
M&S' share price remained relatively stable in early trading, dipping by just one per cent.
For the 26 weeks between September 27 – covering the entirety of the cyber attack – M&S reported a half-yearly fall in profit before tax of £184.1m, down £229m from £413.1m in 2024. Fashion, home and beauty sales fell 16.4 per cent, while international sales fell 11.6 per cent and food sales rose 7.8 per cent, driven by "improved perceptions of value and quality", the company said.
"The Food business is now largely recovered... [but] as we have rebuilt online customer traffic in Fashion, Home & Beauty, recovery has been slower," it added.
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Peel Hunt analysts noted that "uncertainty remains" despite management "performing manfully across the cyber incident".
Mark Crouch, market analyst for eToro, described the incident as a "bitter blow for a brand that had been flying high, finally shaking off its dowdy image and delivering the kind of retail renaissance investors had only dreamed of.
"That the share price has held up so resiliently is testament to the strength of the turnaround before the hack, but 2025 now looks like a year of what-ifs."
M&S had previously cautioned markets about the potential impact of the cyber attack, estimating the figure at £300m.