Marks & Spencer reported a significant decline in profits following a major cyber attack that disrupted its operations and impacted sales across several business segments. The FTSE 100 retailer said adjusted pre-tax profits fell by 23.8 percent to £671.4 million for the year ending March 29, representing a £131 million drop compared to the previous period.

The company’s revenue also declined to £13.8 billion, largely as a result of the cyber incident, which occurred around the Easter weekend of the previous year. The attack forced the suspension of online clothing sales for approximately six weeks and caused supply chain disruptions that led to stock shortages and delivery delays. The impact was particularly severe in the fashion, home, and beauty divisions, where sales declined by 7.7 percent and pre-tax profits more than halved due to discounted pricing implemented to clear excess inventory.

In contrast, Marks & Spencer’s food business showed resilience, with sales rising by 7 percent over the year. The company emphasized that despite the setback caused by the cyber attack, its broader turnaround strategy remained on track. This plan involves refurbishing existing stores, opening 12 new food-focused outlets, and launching an additional three larger stores that combine food and clothing offerings.

Chief Executive Stuart Machin and Chairman Archie Norman were among about 63,000 employees who will forgo bonuses this year as a consequence of the disrupted performance. Machin stated that the company has emerged stronger from the incident and anticipates a return to profit growth in the current financial year.

Machin also acknowledged the challenging environment faced by retailers, citing increased taxes, regulatory pressures, and global conflicts as contributing factors. Nonetheless, he expressed confidence in Marks & Spencer’s ability to navigate these challenges, emphasizing that the company remains "unshaken by short-term events" and committed to its clear strategic plan.