In a promising turn, the John Lewis Partnership has reported a substantial reduction in losses, indicating progress in its transformation plan.
- For the six months ending 27 July, the company reported a pre-tax loss of £30m, a notable improvement from a £59m loss in the previous year.
- The Partnership’s adjusted operating profit rose significantly to £48m, marking a return to profitability for the first time in three years.
- Despite a decrease in John Lewis’s specific profits due to a challenging market for general merchandise, total revenue rose by 2%.
- The Partnership aims to continue its profit growth with strategic investments and is on target to achieve significant cost savings by 2026.
In a promising turn, the John Lewis Partnership has reported a substantial reduction in losses, indicating progress in its transformation plan. For the six months ending 27 July, the company reported a pre-tax loss of £30m, a notable improvement from a £59m loss in the previous year. This marks a significant step toward their goal of improving performance for the full year.
The Partnership’s adjusted operating profit rose significantly to £48m, marking a return to profitability for the first time in three years. This improvement was achieved through a combination of strategic initiatives, including cost reduction measures. The company successfully delivered £78m in savings, contributing to a total of £500m in cost efficiencies since January 2021.
Despite a decrease in John Lewis’s specific profits due to a challenging market for general merchandise, total revenue rose by 2%, reaching £5.2bn. John Lewis experienced a 3% drop in sales, primarily attributed to factors such as reduced customer spending power and unfavourable weather conditions.
Amidst these challenges, some sectors showed resilience. While fashion and home sales softened, beauty products saw a positive sales trajectory. John Lewis is bolstering its customer experience by reinvesting in its pledge of “Never Knowingly Undersold” and refurbishing key stores.
Looking ahead, the Partnership aims to continue its profit growth with strategic investments and is on target to achieve significant cost savings by 2026. The expectation is for profits in the second half of the year to surpass those in 2023/24, with a continuous focus on enhancing service quality and customer satisfaction.
The results underscore John Lewis’s steady progression towards financial recovery, driven by effective transformation efforts.
