By Basant El-Faramawy
Marks & Spencer reported a sharp profit recovery in the six months to 26 September, with pre-tax profits reaching £355m compared with just £3.4m a year earlier, as the retailer continued to rebuild from a devastating cyber-attack that began over Easter 2025.
Cyber-attack impact lingered
The hack forced M&S to shut its clothing and homeware website for more than six weeks. The company said sales and profit in that division remained below levels seen two years ago because "availability was constrained due to the longer than expected impact of manual ordering processes following the incident." Clothing, beauty and homeware sales rose 17.5% to nearly £2bn versus the hack-affected period last year, but the mix of online sales diluted profitability due to higher fulfilment costs.
Food business drives growth
Total group sales increased 16.2% to £9.2bn. The food division grew sales by almost 14% to £5.2bn, supported by seven new store openings and expansions. M&S said it gained market share in everyday categories such as meat, dairy and fresh produce after investing £50m in price reductions and quality improvements.
Ocado joint venture turns profitable
The retailer's Ocado joint venture swung to a half-year profit of £25.6m from a £3.1m loss a year earlier, as sales rose 16% and delivery efficiency improved.
Cost-cutting plans
Chief executive Stuart Machin said the brand is in good health but results fell short of potential. M&S aims to cut £120m in costs this year across technology, logistics and stores, partly offsetting new costs including a £35m packaging levy.
