John Lewis losses narrowed as it stays on course to achieve higher full-year profits
Source:Mintel12-09-2024
UK 12-09-2024
For the 26 weeks ended 27 July 2024, John Lewis reported a loss before tax of £30 million, an improvement of 49% compared to the same period last year. The loss before exceptional items narrowed from £57 million last year to £5 million. Partnership sales were up 2% to £5.9 billion, while total sales increased by 2% to £5.2 billion. Waitrose sales grew by 5%, with an adjusted operating profit growth of £75 million. Meanwhile, John Lewis sales dipped by 3%, and adjusted operating profit was down by £24 million.
John Lewis Partnership expects “further profit growth in the second half, when we typically generate a significantly higher proportion of our profit”. It is confident that “that full year pre-exceptional profits should be significantly above the £42m we reported in 2023/24.”
Mintel comment:
“There are positive signs within these results, particularly at the bottom line, but equally they highlight why the business has enacted so much change in recent weeks. The performance at Waitrose is improving, and continued volume growth is a real positive, as it highlights that the changes made of product and pricing earlier in the year have seen sustained consumer interest, rather than just a launch bump. At John Lewis, further sales decline is a concern albeit in a very tough market, particularly given that fashion sits high within the retailer's product mix. A strong, now two-year performance, in beauty remains a high point and gives confidence that it being a core focus of the Oxford Street upgrade, as well as in other areas, will prove fruitful. The performance underlines the importance of Never Knowingly Undersold ahead of Q4, with a significant opportunity for John Lewis to encourage shoppers back and to trade-up, while remaining a value-focused business.”
