THE RETAIL BULLETIN - The home of retail news
Lest we forget
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
Interviews
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
John Lewis profits down in first half

The John Lewis Partnership saw its pre-tax profits decline by 53.1% to £26.9 million in the first half of its financial year as the business was impacted by costs relating to restructuring.

DEPARTMENT STORES

John Lewis profits down in first half

The John Lewis Partnership saw its pre-tax profits decline by 53.1% to £26.9 million in the first half of its financial year as the business was impacted by costs relating to restructuring.

Group gross sales increased by 2.3% to £5.40 billion as Waitrose and John Lewis both grew their sales by 2.3%.

Operating profit, before exceptional items and property profits, was up 10% at the John Lewis department store chain but down 18% at Waitrose as the supermarket was hit by higher cost prices.

Sir Charlie Mayfield, John Lewis Partnership chairman, said: “Our results also reflect the acceleration of our strategy to ensure the group's success in the future.

“This has included: changing the way we operate Waitrose branches, creating new flexible team structures with broader responsibilities; further changes in John Lewis to adapt the business for the future; and moving from divisional to group functions across finance, personnel and IT.

“As a result, we incurred exceptional costs of £56.4 million. Given the key role our partners play, we are very focused on managing the risk of these changes carefully.”

John Lewis said the first six weeks of the second half had seen group gross sales rise by 2.4%, with a 0.4% increase in like-for-like sales at Waitrose and a 2.6% uplift at John Lewis.

Looking ahead, Mayfield said: “We are well set for our all-important seasonal peak, but expect the headwinds that have dampened consumer demand and put pressure on margins to continue into next year.”

The company said its full year profits will depend as always on the final quarter which typically accounts for well over half of its profits before exceptional items.

Mayfield added: “We expect margin pressure to continue into the second half year and we will incur higher pension accounting charges, as a result of low market interest rates at the start of the year. These will impact our overall profits.”

 

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

The Retail Design Seminar 2018
The Retail Design Seminar 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Seminar 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
AI in Retail Conference 2019
AI in Retail Conference 2019
18 September 2019
Cavendish Conference Center, 22 Duchess Mews, London W1G 9DT
Retail marketing is changing pace rapidly by making communication across all platforms personalised, relevant, efficient, and helpful. AI not only helps shoppers find a perfect product but also pre-empts the shopping behaviour and speeds up payment.
The HR Summit 2019
The HR Summit 2019
Tuesday 8 October 2019
The Cavendish Conference Centre, London W1
The 11th HR Summit 2019, The Cavendish Conference Centre, London W1, 8 October 2019