M&S Profit Growth Outlook After Cyberattack
M&S profit growth forecast to resume after a cyberattack that cut online clothing sales; dividend lift and clear plan may steady investor positioning.
KEY TAKEAWAYS
- Cyberattack forced a seven-week online clothing order suspension and dented sales and margins.
- Adjusted pre-tax profit fell 23.8% to £671.4 million for the year ended March 28, 2026.
- Management expects profit growth to resume in 2026/27 and cited a clear plan and strong balance sheet.
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Marks & Spencer Group PLC said on May 20, 2026, that M&S profit growth is expected to resume in the 2026/27 financial year after a cyberattack disrupted online clothing orders and hurt sales and margins.
Results and Dividend
For the 52 weeks ended March 28, 2026, Marks & Spencer reported adjusted pre-tax profit of £671.4 million, down 23.8% from £881.1 million a year earlier. Revenue declined 25% to £13.8 billion, while adjusted earnings per share fell 25% to 23.8p from 31.9p. Despite the profit drop, the group raised its full-year dividend by 17% to 4.2p per share, including a final dividend of 3.0p, maintaining a focus on shareholder returns.
Cyberattack Impact and Outlook
A cyberattack forced a seven-week suspension of online clothing orders, which the company said reduced sales and margins. Marks & Spencer entered 2026/27 with a clear plan and a strong balance sheet, aiming to restore profit growth compared with 2024/25.
The company cited ongoing challenges from higher fuel, freight, and input costs, along with government tax levies and regulatory pressures affecting the sector. To counter these headwinds, management plans to improve buying, reinvest in value to boost volume, and implement savings from a structural cost-reduction program. These measures are intended to stabilize trading and protect margins while pursuing the growth outlook for the new financial year.
