John Lewis Partnership chair Jason Tarry, CFO Andy Mounsey, and managing director Peter Ruis have expressed optimism regarding the company's financial performance over the past year, citing improvements across all key financial metrics. This positive outlook comes despite increased costs impacting year-on-year profits. Ruis specifically highlighted a 3% increase in sales for John Lewis, reaching $4.9 billion, and an adjusted operating profit rise to $58 million, with an improved operating margin of 1.6%. These gains occurred despite $15 million in non-like-for-like taxation costs.
The group recorded an overall sales increase of 5% year-on-year to $13.4 billion, encompassing both John Lewis and Waitrose. Profit before tax, bonus, and exceptional items grew by 6% to $134 million. Operating cash flow also saw a significant increase of $63 million, reaching $595 million, which supported a $108 million growth in pay. Despite these positive indicators, the partnership reported a loss before tax of $21 million for the 53 weeks ending January 31, 2026, a decrease from a profit of $97 million the previous year, partly due to $120 million in write-down costs.
The profit growth was constrained by $53 million in non-like-for-like taxation, including $13 million from the new extended producer responsibility packaging levy and $40 million from higher National Insurance contributions. The company also noted a "higher promotional mix as customers spent more cautiously, especially in the run-up to the peak period," which affected the margin rate. Despite the pre-tax loss, the group has reinstated a 2% bonus for its staff, equivalent to an extra week's pay, signaling confidence in their turnaround plan. drapersonline.com
In related news, Peter Ruis returned to John Lewis as the department store chain's managing director in January 2024, after more than a decade away. His previous experience includes leadership roles at Jigsaw and Anthropologie, and he had worked at John Lewis from 2005 to 2013. His appointment was aimed at helping turn around the business amidst challenges such as increased competition, particularly from Marks & Spencer, and the high operating costs of large physical stores. theguardian.com
Earlier performance in the first half of the year showed a narrowing loss before tax and one-off items, down to $5 million in the six months to July 27, compared to a $57 million loss in the same period last year. Total revenue for this period rose 2% to $5.2 billion. While Waitrose saw a 5% increase in sales, department store sales fell 3% due to exposure to discretionary items in a challenging market. The group typically incurs a first-half loss, with most profits generated during the Christmas season. The company also reported attracting 500,000 new customers, reaching a total of 23.1 million, and plans to invest $500 million this year. reuters.com
