John Lewis Partnership: H1 sales up but loss widens

The John Lewis Partnership, which includes the John Lewis department store chain, has reported a mixed set of results for the first half of the financial year, which ended on July 26, 2025. While the company saw a pre-tax loss of 34 million pounds and, it also reported a 4 percent increase in overall sales, reaching 6.2 billion pounds. This growth was attributed to a deliberate strategy of accelerating investments in store upgrades, digital services, and technology, which led to a rise in customer numbers and market share.

Jason Tarry, chairman of the John Lewis Partnership, stated, “Our clear focus on accelerating investment in our customers and our brands is working: more customers are shopping with us, driving sales, and helping Waitrose and John Lewis outperform their markets. We achieved our highest recorded levels of positive customer satisfaction, a testament to the great service of our Partners."

Tarry added that the investments, combined with plans for peak trading, "provide a strong foundation for the remainder of the year. While we are reporting a loss in the first half, we’re well positioned to deliver full year profit growth, which we’ll continue to invest in our customers and Partners.”

The John Lewis department store chain saw its sales increase by 2 percent to 2.1 billion pounds, outperforming a retail market facing economic uncertainty. The company has successfully attracted more customers, reflecting the strength of its strategic initiatives. These include a renewed focus on offering quality and value, as well as the return of its "Never Knowingly Undersold" promise, which has driven sales and improved perceptions of its value for money.

John Lewis's strategic investments and a sales mix shift towards technology and beauty products temporarily impacted gross margin, resulting in an adjusted operating loss of 53 million pounds for the first half. However, the company is confident that these investments will build momentum for the second half of the year, particularly during the crucial peak trading season.

The grocery chain Waitrose performed well, with sales surpassing 4 billion pounds for the first time in a half-year period. Its sales grew by 6 percent and volumes by 3 percent, with the brand attracting 9 percent more customers than two years ago.

The company's overall financial health remains strong, with a 30 million pounds year-over-year increase in cash generated from operations, reaching 177 million pounds. This financial stability, along with a renewed 460 million pounds credit facility, allows the Partnership to continue self-funding its investment plans.