John Lewis half-year loss widens amid transformation investment

UK retail group John Lewis Partnership (JLP) has reported a widening loss before tax and exceptional items of 89 million pounds for the 26 weeks ended August 1, 2026, compared to a loss of 34 million pounds in the prior-year period. The loss reflects increased investment in brand transformation and elevated operational costs across the business.

Total Partnership sales grew 2 percent to 6.3 billion pounds in the first half. Operating profit before exceptional items and property disposals fell to a loss of 30 million pounds, down from an adjusted operating profit of 17 million pounds recorded in the same period last year.

"Our first-half results reflect our continued investment in our transformation, a more challenging trading environment and the increased costs of doing business," said Jason Tarry, chairman of JLP, in a statement. "Partnership sales grew, customer satisfaction remains strong and the stores we've transformed are outperforming the rest of our estate. That gives us confidence in the commercial headroom for both Waitrose and John Lewis."

Department store division faces market headwinds

The group’s department store arm, John Lewis, reported total trading sales of 2.02 billion pounds, representing a 2 percent decline compared to 2.07 billion pounds in the second quarter of the previous year. The fall was driven by weaker consumer demand for discretionary items.

In category performance, fashion sales decreased to 501 million pounds from 526 million pounds year-over-year (YoY). Home product revenues dropped to 413 million pounds from 435 million pounds. Conversely, technology sales grew to 570 million pounds compared to 392 million pounds in the prior-year period. Concession income within fashion contributed 110 million pounds to total category sales.

Targeted promotional activity and stock management supported full-price sales growth of 5.5 percent. However, the department store division recorded an adjusted operating loss of 83 million pounds compared to a 53 million pound loss in the first half of fiscal 2025, impacted by market conditions and ongoing brand investments.

Outlook for second half

JLP maintained a cautious outlook for the second half of the fiscal year due to broader macroeconomic uncertainty impacting consumer sentiment. Historically, the business generates the majority of its annual profit during the second half, driven by peak trading over the festive season.

The group also confirmed that Will Kernan has been appointed managing director of John Lewis, succeeding Peter Ruis. Management remains focused on cost discipline and executing store transformation plans across the retail estate.