The John Lewis Partnership has reported a growth in sales and profit with the department store group continuing to invest in its customer proposition.
According to its unaudited full year results for the 52 weeks ended 25 January 2025, total John Lewis Partnership, home to Waitrose and John Lewis, sales rose 3% to £12.8bn from £12.4bn against the previous year.
Pre-tax profit resulted at £97m, up 73% from £56m year-on-year. The business said that gross profit margin improved to 2%, up 0.9 percentage points, while customer numbers rose by 2%, with John Lewis shoppers up 11% to 3.7 million.
As for John Lewis, sales were in line with last year at £4.8bn. Adjusted operating profit was £45m. “This year has been pivotal for our business in what remains a challenging environment for the sector,” the group said.
“We have taken steps to invest in the performance of John Lewis. Our focus has been on providing even better value through the return of the Never Knowingly Undersold promise, improved customer service and better product ranges.
“The strategy has shown early success, with the business experiencing contrasting halves within the year. The first half saw a 3% decrease in sales and a £24m drop in adjusted operating profit due to investments in growth. Marked improvement in the second half led to a 3% increase in sales and £8m growth in adjusted operating profit, creating momentum for the future.”
During the period, John Lewis introduced new brands across its departments including Made and Ruggable within its Home division.
Looking ahead, the Partnership expects to invest £600m to enhance its customer proposition further and also forecasts an increase in in profitability in 2025/26.
Jason Tarry, Chairman of the John Lewis Partnership, 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 with the transformation momentum in the Partnership, we remain well placed to drive further growth in the year ahead and over the longer term – creating a Partnership that our customers and Partners are truly proud of.”
Nish Kankiwala, CEO of the John Lewis Partnership, said: “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.”
