The John Lewis Partnership (JLP), owner of John Lewis and Waitrose, has reported a significant improvement in its full-year financial performance, with profit before tax and exceptional items tripling from £42 million to £126 million for the 52 weeks ended 25 January 2025. Total sales grew by 3% to £12.8 billion, with operating profit margin increasing by 0.9 percentage points to 2.0%.
Jason Tarry, Chairman of the John Lewis Partnership, stated: '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.'
Profit before tax rose by 73% to £97 million, while cash generated from operations increased by £99 million to £532 million, supporting the repayment of a £300 million bond. This resulted in the lowest borrowing levels since 2002, strengthening the company's balance sheet with total liquidity of £1.5 billion.
Nish Kankiwala, CEO of the John Lewis Partnership, commented: '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.'
Despite the strong performance, JLP has decided not to issue a Partnership Bonus this year, instead prioritising investment in business transformation and employee pay. 'We do not believe it would be right to award a Partnership Bonus this year,' the company said, highlighting its £114 million pay investment for 2025.
Waitrose reported a 4.4% sales increase to £8.0 billion, driven by strong own-brand performance and price investments. John Lewis maintained sales at £4.8 billion, with significant second-half improvement and strong Christmas trading. Key investments included store refurbishments, omnichannel growth, and new brand partnerships.
Looking ahead, JLP plans to invest up to £600 million in its transformation plan for 2025/26, focusing on store modernisation, digital enhancements, and supply chain upgrades, with further profitability growth anticipated.
More information:
John Lewis Partnership
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