Marks & Spencer Cyber Attack - £102M Cost and 99% Profit Drop

Marks & Spencer cyber attack fallout shows how a single major incident can devastate financial performance even after core systems are restored. Marks & Spencer cyber attack disclosures in half-year results reveal statutory profit before tax falling 99%, from £391.9 million to £3.4 million, after the retailer booked almost £102 million in one-off costs tied to the breach. Those costs include legal and professional services and an aggressive move to bring more technology operations in-house, with a further £34 million in spending expected in the second half. Marks & Spencer cyber attack analysis suggests the intrusion began with social engineering involving impersonation of workers and IT support desks, leading to disruption across online clothing orders, click-and-collect services, and logistics, including deliveries to Ocado. The attack has been linked to DragonForce ransomware-as-a-service, associated with the Scattered Spider group that also targeted the Co-operative Group and Harrods. Although a £100 million cyber insurance payout helped offset losses, experts note that the recovered amount represents only a small fraction of total financial and operational damage. For retailers and consumer-facing enterprises, the Marks & Spencer cyber attack underscores how revenue loss, remediation expenses, and long-running transformation programs can far exceed any ransom demand. Attackers increasingly understand the leverage they gain when they disrupt omni-channel operations and supply chains at the start of a financial year, forcing organizations to reallocate investment from growth to recovery.