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M&S reports potential losses due to cyber attack

Marks and Spencer warns of £4 million daily losses from a cyber breach, impacting investor outlook.

May 17, 2025 at 02:06 PM

Four-day warning issued over M&S cyber attack with 'cautioned' advised

Marks and Spencer prepares to report significant financial losses following a cyber attack.

M&S faces major loss due to cyber attack

Marks and Spencer is bracing for financial fallout from a cyber attack, which is forecasted to cost the company around £4 million daily in lost sales. The company will share its financial performance on May 21. While it is expected to post an increase in total group sales to approximately £13.8 billion, the full impact of the cyber attack will not be reflected in these figures, as they cover the year ending March 31. The fashion segment may suffer particularly during this critical retail period, as online orders remain suspended. Cybersecurity experts note a shift in focus from UK to US targets by the attackers, known as Scattered Spider.

Key Takeaways

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M&S expects around £4 million daily loss due to cyber attack

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Total group sales projected at £13.8 billion despite ongoing breach

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Fashion sales may decline sharply during key retail period

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Cyber attack highlights vulnerabilities in the retail sector

"Although the annual numbers won’t show the effect, some guidance for the year ahead is expected, and it’s likely to be very cautious indeed."

Susannah Streeter from Hargreaves Lansdown emphasizes the cautious outlook for M&S post-breach.

"Scattered Spider members in the UK are facilitating and contributing to intrusions."

Charles Carmakal, CTO at Google's Mandiant, discusses the active role of UK-based cybercriminals in recent attacks.

The situation highlights how vulnerable retailers are to cyber threats, especially during peak trading times. Marks and Spencer’s reported sales growth may seem positive, but this is overshadowed by potential losses from the breach. As retailers increasingly rely on online sales, incidents like this can cause lasting damage to brand reputation and customer trust. The cautious guidance expected from M&S could reflect deeper concerns about future earnings, emphasizing the need for enhanced security measures in the retail sector.

Highlights

Retailers must rethink their cybersecurity strategies now
Protecting customer trust is vital after breaches like this
Daily losses of £4 million show high stakes in online retail
M&S's cyber ordeal is a wake-up call for all businesses

Cyber attack poses significant risks to M&S

M&S is facing potential losses of £4 million daily due to a major cyber attack, raising investor concerns about future financial stability and operational disruptions.

The full impact of this cyber incident on M&S will unfold in the coming weeks.

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cybersecurity retail M&S sales investors business technology finance

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