Marks & Spencer has reported a sharp recovery in its half-year profits as the British retailer continues to rebuild its business after a damaging cyberattack. The company recorded profits of £355 million for the six months to 26 September, compared with only £3.4 million during the same period a year earlier. Total sales also increased by 16.2% to £9.2 billion.
The cyberattack began in 2025 and forced M&S to close its online clothing and homeware services for more than six weeks. The disruption affected ordering, stock management and customer services. Even after the company restored its systems, some problems continued because staff had to rely on manual processes to manage orders and supply levels.
Chief Executive Stuart Machin said the company had made progress but still had work to do. Clothing and homeware sales remained below the level recorded two years earlier, partly because the retailer had struggled to keep enough products available. Online sales also increased fulfilment costs, placing pressure on profit margins.
The company’s food division performed more strongly. Food sales rose by almost 14% to £5.2 billion during the half-year period. M&S said the business benefited from new stores and improvements to existing locations. Its joint venture with Ocado also returned to profit, reporting a positive result after a loss during the previous year.
Machin criticised the government’s recent budget, saying it did not provide enough support for business growth. He argued that changes to business rates would increase the company’s costs and also raised concerns about a planned deposit-return scheme. At the same time, he welcomed the prospect of a new UK-EU food trade agreement, which could reduce paperwork and transport costs for food exports.
M&S plans to cut around £120 million in costs across technology, logistics and stores. The company said it does not plan to make redundancies as part of this programme, although it may be more careful about hiring new staff. It also expects additional expenses linked to a packaging levy.
The results suggest that M&S has made progress after a difficult period, but the recovery is not complete. The retailer will need to maintain product availability, control costs and keep customers interested as household budgets remain under pressure. Its performance over the next six months will show whether the improved results can continue.
