John Lewis narrows losses, on track to deliver higher full year profit

John Lewis Partnership reported sales of 5.9 billion pounds in the first half, up 2 percent year-on-year, while revenue was up 2 percent to 5.2 billion pounds. The company said that the Partnership is on track to deliver significantly higher full year profit above the 42 million pounds reported in 2023/24.

Commenting on the first half trading, Nish Kankiwala, chief executive officer of the John Lewis Partnership, said in a statement: “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.”

Review of John Lewis first half performance

John Lewis sales of 2 billion pounds, were down by 3 percent, in a challenging market. Gross margins improved by 0.5 percentage points in the first half, however, adjusted operating profit declined by 24 million pounds off the back of lower sales and an investment in partners and technology to enhance customer service.

First half customer numbers grew to 13.6 million, up 2 percent. Beauty sales were up but fashion was impacted by the squeeze on customers’ disposable income and unseasonal weather, with sales down.

The company added that the lower demand for ‘big ticket’ items saw softer home sales, while cookshop sales increased. The company saw positive performance in technology, particularly in smart wearables and mobile phones.

John Lewis announces strategy to drive growth

John Lewis has chalked out a strategy to drive further growth and productivity, including: reimagining ‘Never Knowingly Undersold’ for how customers shop today - price matching 25 major UK retailers in store and now online with the help of AI technology, investing in its flagship Oxford Street store by creating one of the largest Beauty Halls in the country, forging new partnerships, including with Waterstones, which is set to debut in John Lewis Oxford Street in October 2024.

The company also plans to invest in the company-owned and third party brands, such as exclusive collaborations with Collagerie on homeware and A.W.A.K.E. Mode for fashion, the launch of Trinny London and the UK retail exclusive for the Oura Ring.

In the upcoming months, the Partnership will complete the refurbishments in John Lewis stores Oxford Street, High Wycombe and Cheadle; and nine Waitrose stores, as well as the opening of a new convenience store in Hampton Hill in London. In addition, both brands will showcase new season products and services in the run up to the key Christmas trading period.