Sterling gains 0.5% after UK inflation leaps in April
British retail giant M&S said Wednesday that a recent cyberattack, which brought online sales to a standstill and left food shelves bare, would cost it around £300 million ($403 million) in operating profit.
The company, known for its clothing, homeware and food products, said disruption from the “highly sophisticated and targeted cyber-attack” would run into July and result in increased stock management costs in the second quarter.
It added that the financial impact would be reduced through management of costs, insurance and other trading actions, with costs related to the incident to be presented separately as an adjusting item.
The cyberattack, which occurred over Easter, wiped over £1 billion from M&S’ stock market value and sent shock waves across the industry, with hackers also targeting the Co-op and Harrods.
M&S reported a 22% rise in profit before tax and adjusting items to £875.5 million, its highest level in 15 years.
Source: CNBC
