LONDON

British retail giant Marks & Spencer (M&S) has announced it expects a £300 million ($402 million) hit on profits this year following a “highly sophisticated” cyberattack that has severely disrupted its online operations and deliveries.

The attack, which occurred over the Easter weekend, has forced the iconic retailer to halt orders on its website and disrupted product flows to stores and to its online grocery partner, Ocado.

M&S says it anticipates ongoing disruption “throughout June and into July” as it gradually restores digital services.

“This has been a bump in the road,” said CEO Stuart Machin. “We will come out of this in better shape, and continue our plan to reshape M&S.”

The incident came just weeks after M&S reported a robust set of annual results.

“This attack interrupted a strong trading period,” Machin said. “We started the new financial year with sales growth ahead of budget across both businesses.”

Despite the scale of the cyber incident, M&S says it is financially well-positioned, with more than £400 million in net funds.

The expected financial damage is likely to be partially offset by insurance payouts, cost reductions, and other recovery measures.

The cyberattack, attributed to the hacker group Scattered Spider, also resulted in the theft of some customer data, including names, addresses, dates of birth, and order histories.

It follows similar cyber breaches reported at other major UK retailers, including Harrods and the Co-op.

M&S remains one of the UK’s most recognized retail names, selling food, clothing, and home goods both online and in-store.