M&S stock falls 7% following cyberattack: Implications for investors explained.
Marks & Spencer Suffers Significant Disruption Following Cyberattack
A cyberattack on Marks & Spencer (M&S) has caused over a week's worth of operational disruption and substantial share price losses, erasing approximately £700 million from the company's market value. The attack, which occurred between April 23 and 29, resulted in a 6.9% plunge in M&S shares.
The perpetrators behind the attack have not been officially identified, but reports suggest a possible link to a hacking group known as Scattered Spider. This group is rumored to consist of British and American teenagers.
The disruption affected various aspects of M&S's operations, including the temporary halt of contactless payments in stores, the suspension of online orders, and the temporary unavailability of click-and-collect services. Additionally, some food stores experienced empty shelves due to the retailer's decision to take certain food-related systems offline.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, noted the significant impact on M&S's management team, who have worked hard to turn the company around in recent years. Having returned to the UK's main stock market index (FTSE 100) in 2023 after being relegated in 2019, M&S's share price has more than quadrupled since late 2022.
The attack could not have come at a worse time, as fashion sales are anticipated to take a significant hit during the warm weather season when summer ranges would normally be in high demand. The disruption began over the Easter weekend and threatens to extend into the early May bank holiday, traditionally a peak shopping period.
Historically, other retailers have suffered from cyberattacks, such as JD Sports in 2023, which saw a data leak affecting 10 million customers. However, the M&S attack is of a larger scale, with the complete shutdown of online orders potentially costing the company "seven figures per day."
Experts suggest investors will want to understand the measures M&S is taking to prevent future cyber incidents and protect itself from similar attacks. Russ Mould, investment director at AJ Bell, noted the gradual recovery of the M&S share price, indicating investor confidence in the company's ability to resolve the issue and bounce back from the disruption.
| Key Points || --- || - Cyberattack caused disruption and substantial share price losses for M&S || - Suspension of online orders, contactless payments, and click-and-collect services || - Investors seeking information on M&S's measures to prevent future attacks || - Gradual recovery of M&S share price may indicate investor confidence |
- The disruption caused by the cyberattack on Marks & Spencer (M&S) has resulted in a need for the company to address questions from investors about their measures to enhance cybersecurity and safeguard against future attacks, particularly in the realm of finance and technology.
- While the attack has negatively impacted M&S's property sector, such as the temporary halt of contactless payments in stores and the suspension of online orders, experts remain optimistic about the eventual recovery of the company, given the gradual rise in M&S's share price, denoting a growing confidence among investors in the face of challenges like these.
