Marks & Spencer Faces £300 Million Hit from Cyber Attack Disruption

Marks & Spencer is experiencing significant disruptions to its business following a major cyber attack over the Easter weekend, with the company expecting the disruption to continue through July. The attack has resulted in halted online orders and empty shelves in many of its stores. The incident has heavily impacted online sales and profits in its fashion, home, and beauty business, while food sales have been affected by reduced availability, although the company claims this issue is already improving.

Key Takeaways:

• The cyber attack is expected to continue disrupting Marks & Spencer's business through July.
• The company estimates the disruption will cost around £300 million.
• Online sales and profits in the fashion, home, and beauty business have been heavily impacted.
• Food sales were affected by reduced availability, but this issue is claimed to be improving.
• The cyber attack is expected to reduce group operating profits by around £300 million this year.
• Cost management, insurance, and other reactions are expected to mitigate the impact.
• Marks & Spencer's Chief Executive, Stuart Machin, believes the incident allows the company to accelerate the pace of change.
• The company aims to emerge from this period a stronger business, with no change to its strategy or longer-term plans to reshape Marks & Spencer for growth.

Statistics:

• Estimated cost of disruption: £300 million.
• Expected reduction in group operating profits: £300 million.
• Period of disruption: July.
• Year affected: Not specified.

Sources:

• "Marks & Spencer faces £300m hit from cyber attack disruption" - (Source date not specified, but likely from the article publication date)