Marks & Spencer Group Plc anticipates a profit recovery, projecting pretax earnings will resume growth in the current financial year after a cyberattack derailed performance. The British fashion and food retailer disclosed Wednesday that profit for the year ending March 2025 reached its highest level in more than 15 years, despite the disruption.

The company reported a 24% decline in adjusted pretax profit for its latest full year, directly attributed to the costly cyber hack. CEO Stuart Machin is pushing ahead with transformation initiatives, including expanding the retailer's online presence and international footprint. However, M&S faces headwinds from weaker consumer sentiment in its home market and rising costs stemming from Middle East tensions.

M&S shares have fallen about 11% over the past year to Tuesday's close, reflecting investor uncertainty about the recovery path. The retailer must now demonstrate it can execute its turnaround strategy while navigating a challenging domestic consumption environment and elevated operating costs.