John Lewis profits triple as it hails ‘progress’ of ongoing transformation

The Partnership, which owns grocer Waitrose and John Lewis department stores, reported today that profit before tax and exceptional items for the 52 weeks to January 25, 2025, tripled from £42m to £126m.

Sales at the group were up 3% year on year from £12.4bn to £12.8bn.

With an eye to Waitrose, sales grew 4.4% during the year to hit £8bn, while adjusted operating profit at the grocer increased by £122m to reach £227m.

At John Lewis, sales were “in line” with last year and reached £4.8bn, which the group said was “ahead of the market with momentum building across the year”. Adjusted operating profit at John Lewis for the year hit £45m.

John Lewis also announced today that employees would not receive a bonus for the third year in a row as it prioritises investment into its business transformation and staff pay instead.

JLP said it is investing a further £114m into pay as well as up to £600m in business transformation “after careful consideration”.

The group hailed the return of its famous price pledge ’Never Knowingly Undersold’ during the year as well as investments across its store estate, including at both Waitrose and John Lewis.

In terms of outlook, John Lewis said it remains “confident” in its strategy despite the macroeconomic environment continuing to “be challenging” for its customers and the business.

The retailer said it is “making solid progress” but it has “much more to achieve”, and added that it expects another rise in profitability in the 2025/2026 financial year.

JLP chair Jason Tarry said: “These are solid results, which show that our customers are responding well to our investments in quality products, value and service. We have made good progress with much more still to do. 

“Looking forward, I see significant opportunity for growth from both our Waitrose and John Lewis brands. Our focus will be on enhancing what makes these brands truly special for our customers. This will involve considerable catch-up investment in our stores and supply chain, underpinned by a strong focus on the core elements of great retail, delivered by our brilliant partners. 

“Our distinct Partnership model stands out as a key competitive differentiator, enabling us to adopt a long-term perspective. I am confident that with the transformation momentum in the partnership, we remain well placed to drive further growth in the year ahead and over the long term, creating a partnership that our customers and partners are truly proud of.”

JLP chief executive Nish Kankiwala added: “I want to thank all of our partners for their incredible hard work this year and our customers for their loyalty, both of which led to continued momentum through the year and especially over Christmas. Tripling our profit is a significant testament to the progress of our transformation - focused on delighting customers while continuing to deliver efficiency improvements, thereby laying the foundations for long-term sustainable growth.

“Both brands are showing good momentum. Our strategic investments in product innovation, quality, service and value have yielded significant improvements in customer satisfaction, attracting more customers to shop with us.

“As I step down after two years as CEO, which has been an incredible privilege, I want to express my gratitude to our partners who have shown amazing commitment to our refreshed plan. I am confident in the Partnership’s continued success given the momentum we have built and the opportunities that lie ahead.”