Retail Giant Struggles with Ransomware Fallout
- M&S faces £300m profit hit from cyber attack
- Online orders halted and store shelves affected
- Impact on group operating profit for the current financial year
- Recovery efforts underway with technology transformation acceleration
- Food sales impacted, online sales heavily affected in Fashion, Home & Beauty
- Profit before tax and adjusting items up 22% to £875.5m
- Sales rise 6% to £13.9bn
Marks & Spencer (M&S) has warned of a £300 million profit hit due to the consequences of last month’s ransomware attack, which forced the retailer to halt online orders and affected store shelves. The company expects disruption to continue through June and into July as they work to restore systems and operations. Food sales have been impacted by reduced availability, while online sales in Fashion, Home & Beauty were heavily hit due to the pause on shopping. Despite these challenges, M&S’s profit before tax and adjusting items increased 22% to £875.5 million, with sales rising 6% to £13.9 billion.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the impact of the ransomware attack on M&S’s profits and operations, as well as updates on their progress in recovery. It also includes relevant financial data such as profit before tax and sales figures. However, it does not contain any personal opinions or sensationalism.
Noise Level: 3
Noise Justification: The article provides relevant information about the impact of the ransomware attack on M&S’s profits and operations, as well as updates on their progress in recovery. It also includes some quotes from the CEO. However, it could benefit from more detailed analysis or discussion of the long-term consequences and potential changes to the company’s strategy.
Financial Relevance: Yes
Financial Markets Impacted: No
Financial Rating Justification: The article discusses the financial impact of a ransomware attack on M&S, a retail company, which will result in a £300m hit to its profits. It also mentions profit before tax and sales figures for the company.
Presence Of Extreme Event: Yes
Nature Of Extreme Event: Technological Disruption (cyber-attacks, major service outages, data breaches, etc.)
Impact Rating Of The Extreme Event: Moderate
Extreme Rating Justification: The extreme event was a ransomware attack that caused online disruptions and impacted the company’s profit. The retail giant had to halt online orders and manage additional costs, but it is working towards recovery and accelerating its technology transformation.
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