logo
M&S stops online orders and issues refunds after cyber attack

M&S stops online orders and issues refunds after cyber attack

Business Mayor26-04-2025
Tom Gerken & Graham Fraser
Technology reporters Alamy
Marks & Spencer (M&S) says it has stopped taking online orders as the company struggles to recover from a cyber attack.
Customers began reporting problems last weekend, and on Tuesday the retailer confirmed it was facing a 'cyber incident'.
Now, M&S has entirely paused orders on its website and apps – including for food deliveries and clothes – and says it will refund orders placed by customers on Friday.
The firm's shares fell by 5% following the announcement, before recovering.
Online orders remained paused on Saturday morning.
'We are truly sorry for this inconvenience,' the retailer wrote in a post on X.
'Our experienced team – supported by leading cyber experts – is working extremely hard to restart online and app shopping.
'We are incredibly grateful to our customers, colleagues and partners for their understanding and support.'
It said its stores remain open despite the issues affecting online ordering. Ongoing issues
Previously, the firm was dealing with problems which affected people using contactless payments, Click & Collect, as well as those paying with gift cards.
Since it suspended online ordering, M&S has responded to social media posts advising customers that these problems persist.
'Gift cards, e-gift cards and credit receipts can't currently be used as a payment method in store or online,' it said in response to one person on X.
But it told another that if people have already received an email telling them an item is ready to be collected, they should be able to go into the store and pick it up.
'We're holding all parcels in store until further notice, so there's no risk of it being sent back,' it said.
But some people have criticised the firm for its handling of the outage, particularly around its messaging to customers.
'After being told yesterday in the evening the problem with gift cards was sorted, went in store today and was sent away again,' one person told the firm in a post on X.
They said it was the fourth day in a row they had tried and failed to use their M&S gift card.
Meanwhile, despite the frustrations, some people online have praised in-store staff over their service amid the problems, and called for customers not to take their frustrations out on workers.
But many still appear to have questions over how existing purchases, orders and returns will be impacted by the continued fallout from the cyber attack.
Online grocer Ocado, which sells M&S food on its platform, is unaffected by the problems as it runs on an entirely separate system. M&S
The M&S website is now informing customers it has stopped taking online orders. Online disruption
A spokesperson from the Information Commissioner's Office told the BBC that M&S was 'assessing the information provided' after the retailer told it about the incident.
The firm previously said on Tuesday it had reported the incident to the National Cyber Security Centre (NCSC), and the National Crime Agency told the BBC it was working with the NCSC to support the firm.
In an update to investors on Friday, M&S said its decision to pause online orders in the UK formed part of its 'proactive management' of the incident.
'The M&S team – supported by leading experts – is working extremely hard to restore online operations and continue to serve customers well,' it said.
Amid the continuing fallout of this week's cyber attack, however, experts are speculating around what may be behind it.
Nathaniel Jones, vice-president of security and AI strategy at cyber security firm Darktrace, said M&S halting online sales shows 'the cascading impact these attacks can have on revenue streams'.
'It demonstrates how quickly cyber incidents can cripple retail operations across both digital and physical channels,' he added.
William Wright, from cybersecurity firm Closed Door Security, said he believed it could have a 'material impact' on the firm.
'Data shows almost a quarter of the store's sales happen online, so no matter how long this pause is put in place, it will hurt M&S financially,' he said.
The retailer is the latest major brand to experience significant disruption to its online services in recent months.
Morrisons faced huge problems with its Christmas orders last year, with deliveries cancelled and discounts not applied.
This was followed by two major banking outages on what was pay day for many in the first two months of this year.
In January, serious IT problems at Barclays affected the bank's app and online banking. It was later disclosed Barclays could face compensation payments of £12.5m.
In February, several banks – notably Lloyds – faced outages, leaving businesses unable to pay staff.
Additional reporting by Liv McMahon
READ SOURCE
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Famed market bear Albert Edwards warns of an 'everything bubble' in US stocks and home prices that could soon pop
Famed market bear Albert Edwards warns of an 'everything bubble' in US stocks and home prices that could soon pop

Business Insider

time37 minutes ago

  • Business Insider

Famed market bear Albert Edwards warns of an 'everything bubble' in US stocks and home prices that could soon pop

Société Générale's Albert Edwards, famed for calling the dot-com bubble leading up to the 2000 crash, is again warning investors of a potentially painful plunge ahead. In his latest note to clients this week, Edwards said US stocks and home prices are in an "everything bubble" that he thinks could soon pop. Stock valuations are indeed steep. The Shiller cyclically-adjusted price-to-earnings ratio sits at 38, one of its highest levels ever, and both the trailing and forward 12-month PE ratios of the S&P 500 are historically high. To Edwards, this doesn't sit well with the fact that long-term interest rates have been on the rise. Rising long-end government bond yields tend to weigh on stock-market valuations as investors can find attractive returns without taking on the high level of risk in the stock market. Yet US stocks have seen a robust rally in recent years, gaining 78% since October 2022 lows. The market's high valuations have kept future estimated equity-market yields low. When stocks are more cheaply valued, they can expect higher future returns, and vice versa. "It is notable how the US equity market has been able to sustain nose-bleed high valuations despite longer bond yields grinding higher," Edwards wrote. "I don't expect it'll be able to ignore it much longer." On housing, Edwards said that the home price-to-income ratio in the US has been virtually flat over the last few years following the pandemic bump, while the ratio has dropped in countries like the UK and France. "The US is the only market in which house price/income ratios have NOT de-rated since 2022 as bond yields have risen. Is the US housing market also exceptional relative to Europe? No, it's nonsense and, in time, investors will come to claim they knew that all along," Edwards wrote. As for what could cause the potential bubbles in US stocks and home prices to burst, Edwards said to watch Japan. "In the wake of the ruling party coalition losing its Upper House majority, concerns in the bond market about the risks of further fiscal easing and high inflation are growing," he wrote. Higher inflation in Japan could mean higher interest rates and a further unwinding of the Japanese yen carry trade, in which foreign investors borrowed cheaply in yen and converted to dollars to buy higher-yielding US assets. In 2024, the Bank of Japan unexpectedly hiked rates, roiling global markets as investors liquidated assets they had bought with borrowed yen. In May, Edwards warned rising interest rates in Japan could cause a " global financial Armageddon." Edwards publishes his notes, which regularly express a bearish outlook, under Société Générale's "alternative view," separate from the bank's house view. "A lot of clients who totally disagree with me like to read my stuff," he told Business Insider in May. "It's a reality check."

Heard on the Street Recap: European Negotiation
Heard on the Street Recap: European Negotiation

Wall Street Journal

time40 minutes ago

  • Wall Street Journal

Heard on the Street Recap: European Negotiation

The S&P 500 closed at a record for the fifth session in a row. The S&P 500 advanced 0.4% on Friday, and the Nasdaq composite rose 0.2%, both at all-time high closing levels. The Dow Jones Industrial Average also added 208 points. The dollar was boosted by calming Fed politics. After a visit to the renovation of the Federal Reserve's headquarters, President Trump said he didn't think it was necessary to move to fire chair Jerome Powell. The WSJ Dollar Index rose about 0.3%, while gold fell.

The Newest Stock in the S&P 500 Has Soared 510% Since Its 2015 IPO, and It's a Buy Right Now, According to Wall Street
The Newest Stock in the S&P 500 Has Soared 510% Since Its 2015 IPO, and It's a Buy Right Now, According to Wall Street

Yahoo

timean hour ago

  • Yahoo

The Newest Stock in the S&P 500 Has Soared 510% Since Its 2015 IPO, and It's a Buy Right Now, According to Wall Street

Key Points Block has been added to the S&P 500, one of just six companies to make the cut so far in 2025. The company is a fintech pioneer and continues to expand its market. Despite some hiccups earlier this year, Wall Street remains convinced the stock is a buy. 10 stocks we like better than Block › The S&P 500 (SNPINDEX: ^GSPC) is generally recognized as the most comprehensive measure of the U.S. stock market, made up of the 500 leading publicly traded companies in the country. Given the broad reach of the businesses that make up the index, it is regarded as the most reliable benchmark of overall stock market performance. To be considered for admission to the S&P 500, a company must meet the following criteria: Be a U.S. company Its market cap must be at least $20.5 billion Shares must be highly liquid Have at least 50% of its outstanding shares available for trading Must be profitable based on generally accepted accounting principles (GAAP) in the most recent quarter Must be profitable during the previous four quarters in aggregate Block (NYSE: XYZ) is the latest addition to the S&P 500, added to its ranks on July 23. That makes it one of only six companies to make the grade so far this year. Since its IPO in late 2015, Block has easily outpaced the market, generating gains of 510%, compared to a 206% increase for the S&P 500 (as of market close on Wednesday). The stock price gains have been fueled by an ever-expanding fintech ecosystem, as its revenue has soared 1,640%, while net income has jumped 867%. Yet, despite the stock's market-beating gains and the company's strong track record navigating the fluid fintech space it helped pioneer, many believe Block is just getting started. Let's examine the opportunity ahead and why Wall Street believes the stock is a buy. A Square peg in a round hole Block, formerly Square, made a name for itself by pioneering mobile payment processing solutions and point-of-sale systems for small businesses. From those humble beginnings, the company now offers a growing suite of tools for entrepreneurs and consumers alike, including payment processing, point-of-sale systems, business loans, digital retail, loyalty programs, marketing, digital wallet, and -- mostly recently -- consumer loans. At the heart of Block's expanding ecosystem is its two-pronged approach: Square Business, which provides services to merchants, and Cash App, which caters to consumers. The seamless integration between the two segments helps spin the flywheel that has been key to Block's success. It was also among the first major public companies to add Bitcoin to its balance sheet, making its initial purchase in October 2020. Block has thus far spent roughly $261 million and currently holds 8,584 Bitcoin, worth roughly $1.03 billion. The company also announced plans to begin accepting Bitcoin as a payment method later this year. Despite a highly competitive landscape, Block continues to expand its role as one of the leading fintech providers. Paint by numbers You don't have to take my word for it. Despite a backdrop of economic uncertainty caused by persistent inflation and tariffs, Block's recent results tell the story. In the first quarter (excluding Bitcoin), revenue of $3.47 billion grew 8% year over year, while gross profit of $2.29 billion climbed 9%. Operating income of $329 million rose 32%, resulting in adjusted earnings per share (EPS) of $0.56, an increase of 19%. Unfortunately, investors were looking for better gross profit, which sent the stock lower -- but the results were solid nonetheless. Block's performance was fueled by gross payment volume (GPV) that grew 7.2% (8.2% in constant currency). Cash App did its part, increasing user engagement, as gross profit per monthly active user grew 9%. Wall Street is bullish Block lowered its guidance earlier this year in response to the continuing uncertainty, but Wall Street remains bullish. Of the 47 analysts who covered the stock thus far in July, 35 -- or an impressive 75% -- rate it a buy or strong buy. TD Cowen analyst Bryan Bergin is a longtime Block bull, maintaining a buy rating and a $115 price target on the stock, which represents potential upside of 44% compared to the stock's closing price on Wednesday. While he acknowledged the macroeconomic headwinds and a slow start in 2025, he believes that the company is on track for continued improvement in the back half of the year. Bergin also points to improvements toward achieving the Rule of 40. The oft-cited metric evaluates growth in relation to profits, and Block is looking to make the grade by the end of 2025 or early 2026. Despite all that potential, Block is remarkably cheap. The stock is currently selling for just 19 times trailing-12-month earnings and 2 times sales. Block's inclusion in the S&P 500 is an important milestone. It's not only a testament to the company's position in an evolving industry, but also the growing adoption of Bitcoin into the mainstream. Given its long track record, strong secular tailwinds, and Wall Street's bullish take, I would submit that Block is a buy. Should you invest $1,000 in Block right now? Before you buy stock in Block, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Block wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,774!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,942!* Now, it's worth noting Stock Advisor's total average return is 1,040% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Danny Vena has positions in Bitcoin and Block. The Motley Fool has positions in and recommends Bitcoin and Block. The Motley Fool has a disclosure policy. The Newest Stock in the S&P 500 Has Soared 510% Since Its 2015 IPO, and It's a Buy Right Now, According to Wall Street was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store