What: John Lewis Partnership has reduced its losses and is on track for a significantly higher full-year profit as its turnaround plan progresses.

Why it is important: This financial improvement reflects the effectiveness of John Lewis's strategic initiatives, boosting investor confidence and showcasing the retailer's resilience and adaptability in a competitive market.

John Lewis Partnership reported a substantial reduction in pre-tax losses from GBP 9 million to GBP 30 million, with underlying losses (excluding exceptionals) dropping from GBP 57 million to GBP 5 million. Sales for the 26 weeks ending July 27 reached over GBP 5.9 billion, a 2% year-on-year increase. Waitrose, part of the partnership, saw a 5% rise in sales and a GBP 75 million increase in adjusted operating profit. Although John Lewis's sales dipped by 3% to GBP 2 billion, the company remains optimistic about its transformation plan, expecting significant profit growth for the full year. The business gained 500,000 new customers in the last six months and invested GBP 500 million, notably in technology. The reintroduction of the 'Never Knowingly Undersold' price promise, now enhanced with AI technology, underscores John Lewis's commitment to quality, service, and competitive pricing

John Lewis partnership cuts losses and eyes ‘significantly higher’ full-year profit