Following three consecutive years of losses, the John Lewis Partnership is back in profit, its first since the pandemic. The group unveiled profits of £56m for the 12 months to 27 January, with the retailer highlighting that improvement had been achieved through a combination of sales growth, gross margin rate improvement and sustainable productivity improvements.
Nevertheless, there was no annual bonus for staff, in line with recent years. John Lewis sales were £4.8bn, down 4%. While sales in fashion, including beauty, were up on the year, the retailer confirmed weaker sales in home and technology.
“We have made significant progress in the last year to return the business to profitability and delivered results that allow us to increase investment in our retail businesses,” stated Sharon White, chairman of the John Lewis Partnership, who will be leaving the company in 2025.
“We expect profits to grow further this year. This shows our plan is working, while we know there’s much more to do. This year we will unashamedly focus on investing back into our retail businesses for our customers, including opening new Waitrose shops and continuing to modernise our brand offering in John Lewis, while prioritising pay for our Partners.”
The retailer said it was entering “a year of significant investment” with £542m planned – over 70% up on the year – much of which will focus on modernising technology and refreshing shops.
John Lewis will be improving its offer to customers with some 80 new brands and strengthened own-brand, as well as revitalising its Home category.
Top: John Lewis & Partners is back in the black for the first time since the pandemic.
