What: The half-year report showed an improvement on the prior-year period but its results were still far below some of the figures it produced just a few years ago.

Why it is important: John Lewis said that including exceptional items, the Partnership made a loss before tax of GBP 29 million. This was a “significant improvement” on last year’s loss before tax of GBP 635 million. However, on that basis, the result was significantly down from the 2019/20 profit before tax of GBP 192 million.

For the first six months of the year, its profit before exceptional items was GBP 69 million. That was GBP 124 million up on the 2020/21 year, when the Partnership made a loss of GBP 55 million.

On a two-year comparison (2YoY) against the pre-pandenic period, it also showed an improvement as the first half of 2019/20 had seen it making a loss of GBP 52 million. It was helped by the cost reductions it has been driving through and it made savings of GBP 66 million in the first half, as well as receiving business rates relief of GBP 58 million. But while that rates relief boosted it artificially, it also faced exceptional costs of GBP 98 million in the half as it settled lease obligations due to shop closures and dealt with major redundancy costs.

It saw a 6% increase in sales across the Partnership (but gave no monetary figures) and the John Lewis department stores chain and its webstore saw “strong sales growth” in the first half, up 12% on last year (and up 13% like-for-like). This was slightly up (by 1%) on 2019/20 but was 11% higher like-for-like. Almost 75% of sales were online in the first half, broadly the same as last year, and significantly up on the pre-pandemic 40%.

Margins also “rebounded strongly against last year as we returned to a more balanced pattern of trade”, it said. That meant it shifted “fewer laptops, [but saw] more lamps and linen sales”. In fact, Technology sales were flat year-on-year while growth was strong in Home (up 23%), Fashion (up 22%) and Nursery (up 18%).

John Lewis sales improve but profits remain muted

John Lewis unaudited results for half-year ended 31 July 2021