Marks and Spencer’s profits have more than stalled after the retailer suffered a devastating cyber attack, which is still affecting the struggling clothing and homework business.
The marketer says that there is a reason that income is more than changed by £ 184.1m in six months to 2713.1ma1 orders of clothes and homewards in more than six weeks.
The company’s clothing and home sales were down 16.4% in the first half of the year. The marketer said the division “slowly” recovered from the hack than its food arm.
The company said that the sales of stores in stores “were affected by the reduction of visits associated with the click and collect systems of the click and collect” web stores and our website and stores that are available, and the stores are improving”.
Food sales grew a slightly better-than-expected 7.8% in the half-year and the retailer said it “recovered” from the effects of the attack. Group sales rose 22% to £7.96bn.
“We are confident that we will recover and be back on track by the end of the financial year [in March]”It was said in a statement.
M&S said it was helped by a quick fix of £100m in Cyber Insurance but was hit by £50m in a new recycling costs and additional costs. It is now looking to make £600m of cost savings this year as it fights to keep annual profits steady – £100m more than previously planned.
Despite cost cutting, it opened six stores in the six months to the end of September and Plan 12 more in March.
Stuart Macin, the Chief Executive of M & S, said: “In the second half, we expect the benefit of the new year. It should give us a new financial year and put M & S for further growth.
“The retail sector is facing significant headwinds – in the first half, the cost increase from new taxes was over £50m – but there is a lot of cost control and speeding up our cost control and speeding up our cost control and speeding up our cost reduction.
“Our plan to reshape M&S for long-term sustainable growth remains unchanged, our ambitions are unchanged, and our determination to conquer and deliver is stronger than ever.”
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Last week the opposite came next hope that UK consumers are still willing to spend despite the household budgets, as revealed the growth of sales and profits “in material” Material “Material Way” expected in “Material” Material Way “expected in” Material “Material Way” expected “
M&S said in May that it expected to take a £300m hit to profits this year from the devastating cyber-attack. However, it said it hoped to offset the financial impact of the attack by around £150m through insurance, cost reductions and other actions.
The attack on the systems of M & S at the end of the weekend forced the marketer through the website, through which it sells fashion, homeware, for more than six weeks.
Food and fashion deliveries to stores and some deliveries by its online food partner, Ocado, were also disrupted.