M&S to Share Update on Cyber-Attack Recovery and Financial Performance

Marks & Spencer (M&S) is scheduled to provide shareholders with an update on Wednesday, May 20, regarding its recovery from a significant cyber-attack that occurred last year. The incident severely disrupted operations, forcing a six-week suspension of online sales and causing logistics issues that led to empty shelves. The retailer previously estimated that the attack would reduce annual profits by approximately £136 million. For the year ending March 28, M&S is expected to report a pre-tax profit of £654 million, representing a 25% decline from the previous year's £875.5 million. Despite this drop, analysts at Barclays predict a strong rebound in the current financial year, with profits potentially reaching £920 million, surpassing pre-attack levels. However, the company faces ongoing challenges including inflationary pressures, political uncertainty, and a slowdown in the UK clothing market. These factors have recently driven M&S shares to their lowest level in about a year. Investors are looking for confirmation that the retailer has fully moved past the cyber-incident and for a confident outlook on its fashion, home, and beauty divisions.