John Lewis Partnership Reports £124m First‑Half Loss

Overview

• On Thursday the John Lewis Partnership disclosed a £124m pre-tax loss for the six months to August, a marked widening from a year earlier.
• Group sales rose 2% to £6.3bn, with John Lewis sales falling about 2% to roughly £2bn and Waitrose sales rising about 4% to £4.3bn.
• The company said operating costs pushed profits lower, citing higher employer national insurance charges and wage pressures as well as extra grocery costs from summer heatwaves.
• The Partnership is carrying out a head-office reorganisation that has led to some job losses and greater investment and promotional spending in the department store arm.
• Management said it is cautious about the second half when most profit is earned, meaning peak trading will decide the full-year result and could lead to further cost or pricing moves that affect staff and customers.