John Lewis pre-tax profit increases, restores staff bonus

John Lewis Partnership has restored its staff bonus after narrowing its full-year profit.

In the 12 months to January 29, the partnership’s underlying pre-tax profit reached 181 million pounds, 38 percent higher than 2020/21 and 159 percent higher than two years ago.

Including exceptional items worth 161 million pounds and bonus of 46 million pounds, pre-tax loss was 26 million pounds. This was 491 million pounds or 95 percent better than the loss reported in 2020/21.

“Given the positive performance, and the extraordinary contribution of partners, the board decided to share a 3 percent bonus with partners,” said Sharon White, chair of the John Lewis Partnership.

Pay rise

The company has also decided to increase the pay budget by 54 million pounds to pay the voluntary Real LivingWage nationwide, increasing all starting rates to at least 9.90 pounds per hour. Partners will receive a 2 percent pay rise this year in addition to 3 percent bonus.

John Lewis achieved full-year sales of 4.9 billion pounds, which were up 8 percent like-for-like and up 4 percent reported, on last year. Against two years ago, John Lewis sales were up 10 percent like-for-like and 2 percent as reported.

“Looking ahead, we see continued uncertainty from global events, affecting the economic environment, our customers, partners and society,” White said.

“As inflation and energy prices rise, our customers face higher living costs. While this creates uncertainties as we look ahead, we remain focused on investing significantly in our Partnership Plan to transform and grow our business,” White added.