Turnaround Hopes for Marks and Spencers Post Cyber Attack

3 months ago

Louise Moon

"Let's turn then to Marks and Spencers in the UK reporting adjusted pre-tax profits for the first half of the year that beat estimates. What's going on? >> Indeed. So, it it's quite an interesting picture when you look at it. So, they beat estimates, but these profits did still post a huge drop in the first quarter. They had a really tough first quarter all to do with a cyber attack in April which affected their online sales for about four months and it's really hit them. So, a tough first quarter, but as you say, did slightly beat estimates. You know, people expected it to be worse. And then now it was a really positive upbeat commentary from their CEO this morning saying, you know, there's a lot more to be done, but food's outperforming, fashion, home, and beauty is slightly lagging, but getting there. It's progressing after the cyber attack. And looking forward, they expect second half profits to rebound, so be at least in line with with last year. So, as I say, yeah, quite quite upbeat from him. He described the first half as an extraordinary moment in time. The cyber attack came at quite a bad time. He was starting to deliver on his turnaround, but yeah, signaling that that going forward they've kind of got over the worst of it and they'll be delivering further on their turnaround and seem to be progressing ahead of that."

The segment on Marks and Spencers details a rocky first quarter due to a cyber attack but notes a recovery with adjusted pre-tax profits beating estimates. The CEO's upbeat turnaround commentary lends a cautiously positive outlook for the second half.