John Lewis Partnership on Track for Profit Growth Despite Weak Trading Reports
Retailer confirms higher annual profits expected, despite reports of missed internal targets due to weaker market conditions.
The John Lewis Partnership confirmed on Friday that it remains on track to achieve 'significantly higher' annual profits, despite a report suggesting it may fall short of internal targets.
According to a report in The Telegraph, internal documents revealed that the retailer is unlikely to meet its original profit target of 131 million pounds ($163 million) for the year ending January 2025. The partnership attributed the shortfall to 'lower consumer confidence and weaker than expected market conditions' impacting both its John Lewis department stores and Waitrose supermarket chain in the month leading up to December 21. However, this period did not include the crucial Christmas and New Year trading days, which typically contribute significantly to sales.In response to the report, a spokesperson for the partnership emphasized that, as previously stated in September, it is still on course to deliver pre-exceptional profits considerably higher than the 42 million pounds reported in 2023/24. The partnership, which is employee-owned, will provide further updates in March when it announces its full-year results.
The company had reported a reduction in first-half losses to 5 million pounds in September.The John Lewis department store division, which has faced difficulties in recent years due to the COVID-19 pandemic and the ongoing cost-of-living crisis, had previously closed stores and reduced staff.
However, a turnaround strategy launched in 2020 by former chair Sharon White, and continued under new chair Jason Tarry, has focused on brand revitalization, technology investment, and cost-cutting measures.
The UK retail sector saw overall sales dip in December, with official data showing an unexpected fall in retail sales on January 17.
According to a report in The Telegraph, internal documents revealed that the retailer is unlikely to meet its original profit target of 131 million pounds ($163 million) for the year ending January 2025. The partnership attributed the shortfall to 'lower consumer confidence and weaker than expected market conditions' impacting both its John Lewis department stores and Waitrose supermarket chain in the month leading up to December 21. However, this period did not include the crucial Christmas and New Year trading days, which typically contribute significantly to sales.In response to the report, a spokesperson for the partnership emphasized that, as previously stated in September, it is still on course to deliver pre-exceptional profits considerably higher than the 42 million pounds reported in 2023/24. The partnership, which is employee-owned, will provide further updates in March when it announces its full-year results.
The company had reported a reduction in first-half losses to 5 million pounds in September.The John Lewis department store division, which has faced difficulties in recent years due to the COVID-19 pandemic and the ongoing cost-of-living crisis, had previously closed stores and reduced staff.
However, a turnaround strategy launched in 2020 by former chair Sharon White, and continued under new chair Jason Tarry, has focused on brand revitalization, technology investment, and cost-cutting measures.
The UK retail sector saw overall sales dip in December, with official data showing an unexpected fall in retail sales on January 17.