The John Lewis Partnership reports a narrowed pre-tax loss of £30m for the 26 weeks to 27 July, marking an improvement from the £59m loss reported in the previous year.
- The Partnership observed a £52m improvement in profits before tax and exceptional items, reaching £5m in the recent half-year period.
- Revenue growth of 2% was achieved, bringing total revenue to £5.2bn, despite a challenging environment for general merchandise.
- The Partnership remains focused on its cost-saving plans, achieving £500m in savings since January 2021, with a target of £900m by 2026.
- John Lewis continues investing in customer experience, refurbishing stores, and planning further profit growth by year-end.
The John Lewis Partnership has shown signs of recovery by narrowing its pre-tax loss to £30m for the half-year period ending 27 July, a significant improvement from the £59m loss recorded the previous year. This progress is attributed to the company’s strategic focus on its transformation plan, aimed at redefining its business operations and improving financial performance.
A notable advancement was observed in profits before tax and exceptional items, which saw a substantial rise from a £57m loss in the first half of 2023 to £5m in the latest period. This improvement underscores the effectiveness of the company’s ongoing transformation efforts.
Notwithstanding the challenging retail environment, the Partnership achieved a 2% increase in total revenue, reaching £5.2bn. However, John Lewis experienced a decline in its adjusted operating profit by £24m year-on-year due to external market pressures on general merchandise.
The company’s savings initiatives have been productive, yielding £78m in the recent period and amassing £500m in cost savings since January 2021. John Lewis is on track to meet its ambitious target of £900m in savings by 2026.
Despite a 3% fall in sales to £2bn at John Lewis due to factors such as constrained consumer spending and unfavorable weather, certain segments, such as beauty sales, showed positive trends. To counteract these challenges, John Lewis is prioritizing improvements in customer experience through store refurbishments and enhanced service offers.
The Partnership’s leadership, under the guidance of CEO Nish Kankiwala, remains optimistic about future prospects. Kankiwala highlighted the positive trajectory of the transformation plan and anticipates growth in profits for the full year, emphasizing continued investments in quality, service, and value as key drivers of customer engagement and satisfaction.
John Lewis anticipates further profit improvements, buoyed by strategic investments and transformative strategies.
