Losses deepened at John Lewis in the first half, but the retailer is still confident of a strong end to the year.
For the 26 weeks to July 26, 2025, the retailer reported loss before tax of £87m, inclusive of £54m of exceptional items relating to its “ongoing transformation and non-cash impairments”.
Loss before tax and exceptionals was £33m, compared to £4m in the first half of 2024.
The retailer noted that much of these deepening losses were down to new investments in “our customer experience to drive long-term, sustainable growth”.
In the period, John Lewis “adopted a deliberate strategy to accelerate investment in store upgrades, digital services and essential modernisations to our technology and supply chain”.
Group sales at the partnership jumped 4% to £6.2bn, while cash generated from operations increased by £32m to £176m.
Waitrose adjusted operating profit was £110m for the period, a £3m dip year on year, which John Lewis put down to increased costs and taxation from the new EPR packaging level and incremental national insurance hits.
Sales exceeded £4bn in the first half for the first time, driven by a 6% increase in sales and a 3% jump in volumes – both on a like-for-like basis. Customer growth also increased 9% in the period.
John Lewis also reported that customer satisfaction during the period was at its highest record level, with both the department store and Waitrose outperforming their respective markets in the period.
In terms of outlook, the partnership said the investments made in the period “have helped build momentum over the first half” and despite expecting the “macroeconomic environment to remain challenging, our momentum, coupled with exciting plans for the second half, sees us well positioned to deliver full year profit growth”.
Chairman Jason Tarry said: “Our clear focus on accelerating investment in our customers and our brands is working: more customers are shopping with us, driving sales, and helping Waitrose and John Lewis outperform their markets. We achieved our highest recorded levels of positive customer satisfaction, a testament to the great service of our Partners.
“The investments we are making, combined with our plans for peak trading, provide a strong foundation for the remainder of the year. While we are reporting a loss in the first half, we’re well positioned to deliver full year profit growth, which we’ll continue to invest in our customers and Partners.”
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