The hack of British retailer Marks & Spencer could reduce its profits over the coming year by £300m (more than $400 million), according to its recent report of financial results for the London Stock Exchange. This impact substantially exceeds the initial $133 million cyber insurance claim the company is expected to file.
Marks & Spencer Hack Could Distrupt Online Sales Through July
The company, which has shut down online sales, also revealed that online disruptions could continue through July. “In Fashion, Home & Beauty, online sales and trading profit have been heavily impacted by the necessary decision to pause online shopping, however stores have remained resilient. We expect online disruption to continue throughout June and into July as we restart, then ramp up operations. This will also mean increased stock management costs in the second quarter,” noted its financial disclosures.
“Therefore, our current estimate before mitigation is an impact on Group operating profit of around £300m for 2025/26,” reported the company, saying it hopes to reduce losses through “management of costs, insurance and other trading actions. It is expected that costs directly relating to the incident will be presented separately as an adjusting item.”
Given all this, it’s not surprising the company’s CEO recently told the media that he “went into shock” when he learned about the cyber attack, attributed to the DragonForce cyber crime group, potentially working with Scattered Spider hackers.
Two other major British retailers, Harrods and Co-op, have also been hacked this year.
