Marks and Spencer Group PLC (LSE:MKS) investors might need to brace for a few bumps when the retailer reports half-year results on 5 November.
Analysts at Citi reckon the market has yet to fully price in the financial hit from this summer’s cyberattack, which the company itself has estimated at around £300 million in operational disruption, excluding one-off costs.
Citi forecasts adjusted pre-tax profit of £104 million for the first half of the 2026 financial year and £629 million for the full year, 17% and 7% below consensus estimates, respectively.
The bank believes the cyber incident will weigh heavily on first-half results but sees limited lasting damage.
What matters most, it suggests, will be the tone of management’s update on current trading and its progress against medium-term targets, which will be discussed further at M&S’s capital markets day on 11 November.
Citi expects investors to look past the immediate setback and focus instead on the retailer’s longer-term outlook.
Beyond the cyber disruption, the bank remains upbeat. It thinks M&S is on track to deliver stronger profits in 2027 and 2028, forecasts that sit 6% and 11% ahead of market expectations, and argues that the structural improvements in the business are still underappreciated.
For now, though, the story is one of resilience being tested. The cyber incident may have dented the numbers, but Citi believes the retailer’s recovery drive remains firmly on course.