M&S expects return to profit growth after cyber hack related slump

LONDON, May 20 (Reuters) - ​British retailer Marks & Spencer forecast profit growth in ​its ‌new financial year after it slumped 24% ⁠in 2025/26 due to ⁠a cyber hack ​which forced a seven-week suspension of online clothing orders, denting sales and margins.

The 142-year-old ​M&S, ‌one of the biggest names on the UK high street, said it entered its 2026/27 year ​with a clear plan and a strong ‌balance sheet and was focused on delivering further improvements to ‌product availability and service levels.

"Profit growth is expected to resume versus 2024/25," ​it said on Wednesday.

M&S said its outlook for the ‌current year includes higher fuel, freight and input costs and continued government ⁠tax levies and ⁠regulatory headwinds for ‌the sector.

It said these are being mitigated through ​improved ​buying, reinvestment in value to ‌drive volume, and savings from its structural cost reduction programme.

Marks & Spencer