Half-year profits recover at John Lewis

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John Lewis Partnership PLC Update

British retailer John Lewis reports that sales have fallen by a fifth at pre-pandemic levels in the last six months, but are returning to profits before exceptional charges are incurred. ..

“Customers usually go back to the store for larger, more thoughtful purchases such as furniture and beds and” take home “items such as stationery and gifts, but so far not as many as before the pandemic. “Chairman Dame Sharon White said. In a letter to the group staff.

However, department store growth was generally strong in the six months to July 31, with sales up 12% in the first half of last year, 1% above pre-pandemic levels. About 70% of sales were online.

Margins have also improved compared to last year, but are still below pre-pandemic levels.

Employee-owned groups have closed 16 department stores and lost thousands of jobs in the last 18 months.

More roles are planned in the coming months with business consulting on plans to close distribution centers and reduce the number of store managers, as supermarkets Asda, Tesco and Sainsbury have already done.

We have already promised to save another £ 300m to fund our investment in stores and digital capabilities.

Various reductions resulted in a one-time expense of £ 98m for half-year profit and a pre-tax loss of £ 29m. This is the store of the group.

Earnings before the one-off item were £ 69m, compared to last year’s £ 55m loss before impairment.

The group also said that cooperation between department stores and their supermarket chain Waitrose and the introduction of cheaper product ranges are well underway.

John Lewis has also renewed its range of financial services products as part of its plan to raise two-fifths of its non-retail activity revenue by 2025.

Half-year profits recover at John Lewis Source link Half-year profits recover at John Lewis

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