Marks & Spencer shares were higher on Wednesday after the retailer released full-year numbers that beat market expectations, despite profits being lower than the year prior due to the cyberattack.
The group has shrugged off the worst of last year’s cyber incident, posting a second-half recovery that points to better days ahead.
“Full-year profits might have slumped due to the bruising cyber-attack that derailed first-half results, but the strength of the M&S turnaround looks like the real story here,” said Duncan Ferris, Investment Writer at Freetrade.
“Food is M&S’s crown jewel. Sales growth of 7% and increased market share firmly mark the segment as the retailer’s recovery engine. A slight dip in margins may give some investors pause, however. The business has momentum here, but can it translate this into improved profitability?
“This is even more crucial considering how sales faltered in the Fashion, Home & Beauty segment. This section bore the brunt of M&S’s digital disruption, so achieving the clear growth guided for in 2026/27 is crucial. For now, Food is still doing the heavy lifting.”
Group adjusted profit before tax fell 23.8% to £671.4m for the 52 weeks to 28 March 2026, dragged down by the attack that paused online trading and disrupted stock flow.
Statutory profit before tax dropped 28.8% to £364.6m. But the second half told a different story, with adjusted profit up 4.1% year-on-year as the business clawed back momentum.
Marks & Spencer shares have settled into a range between 310p – 410p where the price has remained since the beginning of 2025. Today’s results suggest this range will persist, with numbers not being bad enough to send the stock lower and a gentle grind higher looking likely as the underlying performance remains strong.