The John Lewis Partnership reveals positive half-year results, indicating the success of its ongoing transformation.
- John Lewis Partnership reduces its pre-tax loss from £59m to £30m.
- Excluding exceptional items, losses are down significantly from £57m to £5m.
- Sales for the first half of the year reach £5.9bn, with Waitrose sales rising by 5%.
- John Lewis expects a substantial increase in full-year profits, driven by strategic initiatives.
The John Lewis Partnership has reported encouraging financial outcomes for the first half of the year, showcasing the initial success of its transformation plan. The retailer managed to reduce its pre-tax loss to £30 million from the previous £59 million. When excluding exceptional items, the loss was cut from £57 million to a modest £5 million, demonstrating significant progress in its financial health.
For the 26 weeks ending on 27 July, the partnership achieved sales of over £5.9 billion, marking a 2% increase compared to the previous year. A substantial contribution came from its Waitrose division, where sales saw an impressive growth of 5%, resulting in an adjusted operating profit increase of £75 million.
In contrast, the John Lewis department stores experienced a 3% decline in sales down to £2 billion, with an adjusted operating profit falling by £24 million. However, John Lewis traditionally observes stronger sales in the latter half of the year due to the Christmas period, suggesting potential for recovery.
CEO Nish Kankiwala affirmed that their transformation strategy is effective, expecting significant growth in full-year profits. He stated, “These results confirm that our transformation plan is working and we expect profits to grow significantly for the full year, a marked improvement from where we were two years ago.” The business has successfully attracted 500,000 new customers over the past six months and has made substantial investments, particularly in technology, totalling £500 million.
The company’s strategic measures include the revival of its ‘Never Knowingly Undersold’ price promise, now modernised with AI technology to monitor competitors’ prices. This initiative underscores John Lewis’s dedication to offering quality products and outstanding service at competitive prices.
The John Lewis Partnership is showing promising signs of financial recovery and strategic growth, positioning itself well for future success.
