Marks & Spencer cheers 'record' Christmas but fashion sales slump after cyber attack
Marks & Spencer blamed a slump in fashion and homeware sales on ‘reduced’ High Street shopper numbers as it hailed a record Christmas.Shares rose 3 per cent in early trading to 339.5p as boss Stuart Machin provided some signs that the business is back on track after a devastating cyber attack last year.Sales at its fashion, home and beauty arm fell 2.9 per cent due to ‘reduced High Street footfall’, as well as feeling the impact of the hack.A cyber attack over the Easter bank holiday saw the group unable to sell clothes online for nearly two months and sent shoppers flocking towards rivals including Next.But Machin said the division was ‘getting back on track as we work through the tail end of recovery.’And the retailer hailed bumper food sales over Christmas, with a 5.6 per cent increase over the 13 weeks to 27 December. TThe retailer's fashion sales were hit by a cyber attack as well as a slump in shopper numbersIts bestselling product was its gingerbread and white chocolate cookies, which sold 1.7m packets.And its party food ranges saw growth of 11.5 per cent, with products including mini chicken kyivs and tiger prawns flying off the shelves.Chief executive Stuart Machin said: ‘A record number of customers shopped M&S this Christmas. From the festive food shop, to picking up party outfits and gifts, millions more trusted M&S to deliver the family Christmas.'Analysts at Peel Hunt said: ‘Ignoring the cyber attack, things are moving forward nicely at M&S. However, with the consumer still cautious, forecast momentum is likely flat for now, and that implies the shares probably are too. Longer term, we believe there is much to like.’Christmas trading updates from major retailers have painted a gloomy picture for the High Street this week - with M&S’ rivals warning of a weaker consumer this year.Tesco posted weaker-than-expected Christmas sales amid a 'relentless' price war with discounters Lidl and Aldi, while Associated British Foods slashed growth forecasts for its food and retail businesses.DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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Marks & Spencer cheers 'record' Christmas but fashion sales slump after cyber attack
