Marks & Spencer has said its online services will continue to be disrupted until July due to last month's cyber-attack. Customers have been unable to order online for the past three weeks. "We expect online disruption to continue throughout June and into July as we restart, then ramp up operations," the retailer said. It estimates that the cyber-attack will reduce profits for the current year by around £300m - which is more than analysts had expected the equivalent of a 30% hit to profits. "Over the last few weeks, we have been managing a highly sophisticated and targeted cyber-attack, which has led to a limited period of disruption," said M&S chief executive Stuart Machin. "There is no change to our strategy and our longer-term plans to reshape M&S for growth and, if anything, the incident allows us to accelerate the pace of change as we draw a line and move on," he added. The cyber-attack took place over the Easter weekend, initially affecting click-and-collect and contactless payments. A few days later M&S put a banner on its website apologising that online ordering was not available. The ransomware attack is thought to have been the work of a loose collective of online actors known as Scattered Spider, using illicit tools from the cyber-crime service DragonForce. M&S reported a rise in profits and sales in the year that ended in March, just before the hack disrupted services at the end of April. Profit before tax and adjusting items was up 22% to £875m, while sales rose 6.1%. Mr Machin said the turnaround strategy that he started three years ago had put M&S in it "best financial health for nearly 30 years".
M&S online services to face disruption until July
TruthLens AI Suggested Headline:
"Marks & Spencer Online Services Disrupted Until July Following Cyber-Attack"
Bbc News
7.5
TruthLens AI Summary
Marks & Spencer (M&S) has announced that its online services will remain disrupted until July as a result of a cyber-attack that occurred last month. This disruption has left customers unable to place online orders for the past three weeks, a situation that has prompted the retailer to warn that the impact will extend through June and into July. M&S has stated that the ongoing operational challenges are a direct consequence of a sophisticated and targeted cyber-attack, which has been attributed to a group known as Scattered Spider utilizing tools from the cyber-crime service DragonForce. The company estimates that this incident will lead to a significant reduction in profits for the current financial year, projecting an impact of around £300 million, which surpasses previous analysts' expectations and represents a 30% decline in profits. M&S chief executive Stuart Machin reassured stakeholders that despite the disruption, the company's strategic plans for growth remain unchanged and could potentially be accelerated as they work to recover from the attack.
The cyber-attack, which occurred over the Easter weekend, initially disrupted click-and-collect services and contactless payment options. Shortly after the incident, M&S communicated to customers via a website banner that online ordering capabilities were unavailable. Prior to the cyber incident, M&S had reported an increase in both profits and sales for the year ending in March, indicating a robust financial performance. Specifically, profit before tax and adjusting items rose by 22% to £875 million, while sales increased by 6.1%. Mr. Machin emphasized that the turnaround strategy he implemented three years ago has positioned M&S in its strongest financial state in nearly three decades, suggesting that the company is prepared to face challenges head-on as it seeks to navigate through this cyber crisis and continue its trajectory of growth.
TruthLens AI Analysis
The recent article concerning Marks & Spencer (M&S) highlights the ongoing disruption of their online services due to a cyber-attack that occurred last month. The news sheds light on the significant impact this incident has had on the company's operations and financial outlook.
Purpose of the Article
This piece aims to inform the public about the challenges M&S is facing as a result of the cyber-attack. By detailing the expected timeline for recovery and the financial implications, it serves to manage customer expectations and maintain transparency regarding service disruptions. Furthermore, it reassures stakeholders that the company's long-term strategy remains intact despite this setback.
Public Perception
The article is likely to create a perception of resilience and accountability within M&S. By openly discussing the challenges posed by the cyber-attack while emphasizing their commitment to recovery and growth, M&S aims to foster trust among customers and investors. The mention of increased profits prior to the attack serves to bolster confidence in the company's overall health.
Information Omission
While the article provides substantial information about the cyber-attack's impact, it could be perceived as lacking in details about the company's specific recovery measures and security enhancements being implemented to prevent future incidents. This omission may lead to questions regarding the adequacy of M&S's cybersecurity measures, potentially causing concern among consumers and investors.
Manipulative Elements
The article contains elements that could be considered manipulative, particularly in its framing of the incident. By focusing on the turnaround strategy and the company's previous successes, it presents a narrative that downplays the severity of the attack. This could be interpreted as an attempt to mitigate negative perceptions and maintain investor confidence.
Truthfulness of the News
The information presented appears to be credible, as it includes specific statements from M&S's CEO and quantifiable financial estimates related to the cyber-attack. However, the full context of the attack's implications may not be fully disclosed, raising questions about the complete transparency of the reporting.
Societal Implications
In terms of societal impact, the disruption of M&S's online services could affect consumer behavior, leading to potential shifts towards competitors during the recovery period. Economically, the estimated £300 million loss in profits could have ramifications not only for M&S but also for the broader retail sector, particularly amidst an already challenging economic environment.
Target Audience
The article seems to target a broad audience, including M&S customers, investors, and industry analysts. By addressing the operational challenges while reinforcing the company's long-term strategy, it appeals to those with vested interests in the company's performance.
Market Impact
This news could influence stock market performance, particularly for M&S and similar retailers, as investors gauge the potential fallout from the cyber-attack. The announcement of significant profit reductions may lead to volatility in M&S’s stock price as market participants react to the news.
Geopolitical Context
While this article primarily addresses corporate issues, the involvement of organized cyber-crime groups like Scattered Spider highlights a growing concern regarding cybersecurity on a global scale. The incident underscores the vulnerabilities faced by companies worldwide, which is a relevant topic in today's increasingly digital economy.
AI Influence
There is a possibility that AI tools were employed in crafting this article, especially in data analysis and structuring the narrative. Models could have been utilized to enhance clarity and focus on key points regarding the attack's implications, though the human touch in framing the narrative remains evident.
In conclusion, the article provides a comprehensive overview of the challenges faced by M&S, balancing transparency with an effort to maintain stakeholder confidence. However, the nuances of the situation may leave some questions unanswered, suggesting a need for ongoing communication from the company as they navigate recovery.