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M&S pegs cyberattack cleanup costs at £136M as profits slump. Retailer's tech systems aren’t down anymore, but the same can’t be said for its rocky financials. Marks & Spencer says its April cyberattack will cost around £136 million ($177.2 million) in total. The British retailer disclosed the figure in its half-year results Wednesday, having recorded £101.6 million ($132.4 million) in charges for the six months ended September 27. It expects another £34 million ($44.3 million) in the second half. Marks & Spencer swaps out TCS for fresh helpdesk deal M&S said £83 million ($108.2 million) was spent on "immediate systems response and recovery," while the other expenses are connected to legal and other professional services. Much of these costs will be offset by the maximum £100 million ($130.3 million) claim M&S made on its cyber insurance policy, as referenced in May's 2025 profit and loss accounts and reiterated in today's results.  The attack hammered profits, which fell 55.4 percent year-on-year to £184.1 million ($240 million). The retailer had warned in May that the attack could cost £300 million ($391 million) by year-end. The heavy hit to the bottom was largely attributed to the digital break-in, however, a packaging disposal levy – a new requirement for large businesses to cover the costs of expunging and recycling their packaging – added more than £50 million ($65.1 million) in additional costs. Revenues rose 22.1 percent to £7.96 billion ($10.36 billion), despite the technical difficulties in fulfilling orders, especially those usually made online or internationally. These processes were among the first to be shut down after the cyberattack. Sales in its fashion, home, and beauty departments declined 16.4 percent during the reporting period, owing largely to the halt in online orders, which spanned April to June, before gradually returning over the following weeks. Food sales increased 7.8 percent, although profits were down considerably by 58.8 percent, due to factors such as increased markdown and waste stemming from the manual processes involved in allocating food items to stores. Experts count staggering costs incurred by UK retail amid cyberattack hell Stores were open for business, but saw a 3.4 percent reduction in sales, partly due to reduced availability, and UK online sales were down 42.9 percent. The retailer said one of the earliest actions it took in its incident response was to disconnect warehouse management systems, which in turn meant online and in-store orders were adversely impacted. It was forced to introduce manual processes to keep the business running, which led to higher stock management costs and a decline in operating profit margin from 12 percent to 2.7 percent. CEO Stuart Machin said the first half of the year "was an extraordinary moment in time for M&S," but it is "now getting back on track."