Latest news with #cyberincident
Yahoo
22-05-2025
- Business
- Yahoo
Marks & Spencer Group PLC (MAKSF) Full Year 2025 Earnings Call Highlights: Strong Sales ...
Release Date: May 21, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Marks & Spencer Group PLC (MAKSF) reported a strong financial performance with sales of 13.9 billion, marking a growth of 6.1%. Profit before tax and adjusting items increased by 22% to 875.5 million, showcasing robust profitability. The company achieved a significant improvement in free cash flow from operations, reaching 443 million. Food sales experienced an impressive growth of 8.7%, with like-for-like growth at 8.6%, outperforming the market for over three years. The fashion, home, and beauty segment saw sales growth of 3.5%, with like-for-like sales up 4.4%, maintaining market leadership in value and quality. International sales were down 8.5%, impacted by tough performance in India and a softer fashion order book in franchise markets. The company faced a cyber incident at the start of the new financial year, causing significant disruption and impacting operations. Online operations were temporarily closed due to the cyber incident, affecting sales and trading profit in the fashion segment. The cyber incident is estimated to impact group operating profit by around 300 million for the financial year. Despite strong sales growth, Ocado's profitability remains a challenge, with logistics efficiencies yet to be fully realized. Q: Can you explain the increase in CapEx guidance given the recent CMD? A: (Unidentified_2) The increase in CapEx is due to momentum in store rotation, supply chain investments to support food growth, and planned increases in digital and technology spending. These areas have strict hurdle rate guidelines, ensuring confidence in returns. (Unidentified_4) The returns on growth CapEx have been exceptional, with a RoCE of 16.4%, up from 10% three years ago. Q: What is the customer reaction to the cyber incident, and how have food sales rebounded? A: (Unidentified_2) Customers have been supportive, with the main inquiries being about online shopping resumption and store range. Food sales have held up well, slightly below budget but improving as stock flow normalizes. (Unidentified_4) The focus has been on availability, leading to some waste, impacting gross margin more than sales. Q: How has the return on capital improved, and will it influence future CapEx allocation? A: (Unidentified_2) Strong returns from store rotation investments have increased confidence. The focus is on investing in store rotation with robust processes. (Unidentified_4) Profits have increased significantly, and returns on new stores and renewals have been strong, driving further investment in growth CapEx. Q: Are there any plans for incremental investment in cybersecurity following the incident? A: (Unidentified_2) Significant investments have already been made in insourcing cybersecurity skills and new tooling, which helped detect the incident quickly. The company has tripled its cybersecurity spend over the last four years and will continue to prioritize necessary resources and spending. Q: How are online and store profitability evolving in the clothing and home segment? A: (Unidentified_2) Store sales grew by 1%, while online sales increased by 13%. Online margins were softer due to investments in digital and technology, but improvements are expected in the next two to three years. The focus is on enhancing online profitability through better range and cost management. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
21-05-2025
- Business
- Daily Mail
M&S expects £300m profit impact as cyberattack disrupts operations until July
Marks & Spencer has warned that a 'major cyber incident' will cause a £300 million reduction in operating profits this year. The retailer confirmed that the disruption began over the Easter weekend and continues to impact multiple areas of its business. Online sales for fashion, home, and beauty have been 'heavily impacted', according to the company's financial update. The scale of the breach prompted a pause in website orders and led to visible effects in physical stores, including widespread stock issues. 'It has been challenging, but it is a moment in time,' said Chief Executive Stuart Machin, who expressed confidence in the company's recovery. As a direct result of the breach, customers encountered empty shelves and halted online services throughout late April and May. Some stores, including major locations like Paddington and Cambridge, experienced temporary stock shortages. While food availability was also disrupted, M&S stated this area is 'already improving' as systems are restored. In-store operations were affected as the company overhauled internal IT infrastructure. M&S clarified that 'payments and click and collect orders were also impacted,' but reassured customers that improvements are now underway. One of the more serious aspects of the breach involved the theft of personal customer data. M&S confirmed that hackers accessed information which may include names, email addresses, postal addresses, and dates of birth. While no financial data exposure was reported, the company acknowledged the seriousness of the breach. 'We are now focused on recovery,' said Machin, adding that safeguarding customer trust remains a top priority. Security and legal teams are continuing to assess the extent of the breach and guide mitigation strategies. UK authorities believe a known group of English-speaking teenage hackers may be behind the M&S incident. 'We are looking at the group that is publicly known as Scattered Spider,' said Paul Foster of the National Crime Agency. The agency is coordinating with cybersecurity partners to trace the source of the attack and prevent further incidents. According to the BBC, the same group has also targeted other UK retailers like Co-Op and Harrods. Google confirmed that attacks believed to be by this group are also occurring in the U.S., adding urgency to global defensive efforts. Despite the financial hit and customer inconvenience, M&S leadership is positioning the breach as a moment of transformation. There is no change to the company's growth strategy, and the event may even help speed up its execution. 'The incident allows us to accelerate the pace of change as we draw a line and move on,' said Machin. M&S emphasized that insurance and internal cost management will help offset some of the financial losses. Shares, which had recently reached a nine-year high, fell after the incident, but executives remain focused on long-term stability.
CNA
15-05-2025
- Business
- CNA
Cyberattack-hit M&S says food availability improving every day
LONDON :British retailer Marks & Spencer said on Thursday food volumes flowing from its distribution centres to its stores were back to normal levels after product availability was hit by last month's cyberattack. "In chilled areas of our stores, customers can buy what they need, while in our grocery departments stock is now arriving in a more normal delivery pattern allowing stores to catch up from earlier disruption," it said. "Availability is therefore looking better every day." M&S first disclosed what it called a "cyber incident" on April 22. As systems were taken offline, product availability was impacted in stores across both clothing and home and food. On Tuesday, M&S said some personal customer information was taken in the hack.
Bloomberg
13-05-2025
- Business
- Bloomberg
Marks & Spencer Says Hackers Have Stolen Some Customer Data
Marks & Spencer Group Plc said some personal customer data was stolen by hackers as the British retailer continues to investigate and manage a highly-damaging 'cyber incident.' The stolen data does not include 'useable payment or card details' and there is no evidence it has been shared, the food, clothing and homewares group said Tuesday. Customers do not need to take any action but will be prompted to reset their passwords when they log into the retailer's website, it said.
Zawya
08-05-2025
- Business
- Zawya
South African Airways investigates cyber incident disrupting systems
South African Airways (SAA) has reported a cyber incident that began on Saturday, 3 May 2025, causing temporary disruptions to its website, mobile app, and internal systems. The airline activated its disaster management and business continuity protocols to minimise disruption, ensuring continued customer service via contact centres and sales offices. Normal system functionality was restored the same day. SAA has enlisted independent digital forensic investigators to determine the cause and scope of the breach, which may involve external cybercriminal activities. The airline has also reported the incident to the State Security Agency (SSA), the South African Police Service (SAPS), and the Information Regulator under the Protection of Personal Information Act (POPIA). An investigation is ongoing to determine if any data was accessed or exfiltrated. SAA will notify affected parties directly if a data breach is confirmed. Professor John Lamola, Group CEO of South African Airways, says: "The security and integrity of our business systems and the protection of the consumer data entrusted to us remain our highest priority. In response to the cyber incident that began on 3 May, we acted swiftly to contain the disruption, restore services, and initiate a comprehensive investigation. Our robust business continuity measures ensured operational stability, particularly for our valued customers. "I want to assure all stakeholders, including our partners, customers, and dedicated employees, that we are taking every necessary step to determine the root cause of this incident, strengthen our security framework, and mitigate any potential risks. SAA remains committed to delivering safe, reliable, and resilient service."
