John Lewis Partnership, of the famous UK retailer John Lewis reports a marked improvement in first-half results and is on track to deliver significantly higher profits for the full year. The company offers a diverse selection of items inclusing homeware.
Partnership sales topped £5.9bn in the half, up 2% year-on-year. Total revenue reached £5.2bn, an increase of 2%. Operating profit margin increased by 1.2 percentage points; and cash generated from operations was £147m, up £97m year-on-year.
The company reported 0.5 million new customers in the half, reaching 23.1 million, with customer satisfaction up. Furthermore, company transformation was on track with an investment of £0.5bn this year, up 53% year-on-year.
Nish Kankiwala, Chief Executive Officer of the John Lewis Partnership, says: 'I want to thank all our partners for their hard work during the half and thank our customers for supporting our loved brands. These results confirm that our transformation plan is working, and we expect profits to grow significantly for the full year, a marked improvement from where we were two years ago.'
Sales in the first half were £2.0bn, down 3% in a challenging market. Gross margins improved by 0.5 percentage points, but adjusted operating profit declined by £24m due to lower sales and investments in Partners and technology to enhance customer service. However, customer numbers grew to 13.6m, up 2%, and customer satisfaction improved, as evidenced by better Net Promoter Scores.
John Lewis continues to focus on enhancing the customer experience through investments, including the reimagining of the 'Never Knowingly Undersold' promise to price-match 25 major UK retailers using AI technology, refurbishing flagship stores, forging new partnerships, and exclusive collaborations in fashion and homeware.
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John Lewis
www.johnlewis.com