FMP
May 27, 2025
Marks & Spencer Group PLC, trading under the symbol MAKSY on the PNK exchange, is a renowned British retailer. The company is scheduled to release its quarterly earnings on Wednesday, May 28, 2025. Analysts estimate the earnings per share to be around $0.41, with projected revenue of approximately $9.64 billion.
Recently, M&S faced a significant challenge due to a cyberattack, which is expected to cost the company around £300 million ($403 million). This incident has disrupted operations, including food supplies and online sales, and is projected to reduce annual profits by more than one-third. Despite this setback, the company's profits had increased by 17% year-on-year before the attack.
The cyberattack, attributed to "human error," involved hackers accessing M&S's IT systems through a third party. This breach led to the theft of customer data and temporary suspension of online orders. M&S aims to restore operations "within weeks," as highlighted by Chief Executive Stuart Machin, who remains optimistic about the company's recovery.
Financially, M&S has a price-to-earnings (P/E) ratio of approximately 18.33, indicating the market's valuation of its earnings. The price-to-sales ratio is about 0.59, and the enterprise value to sales ratio is around 0.75, reflecting the company's market value and total value relative to its sales. The debt-to-equity ratio stands at approximately 1.11, highlighting the company's financial leverage.
To mitigate the financial impact of the cyberattack, M&S plans to implement cost management, insurance, and other trading actions. The costs related to the incident will be reported separately as an adjusting item. Despite the challenges, M&S is focused on recovery and getting back to business, as emphasized by Machin.
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