NEWS

John Lewis Partnership pre-tax profit up 9.6%

Published on: 7th March 2014

The John Lewis Partnership has reported its pre-tax profit before exceptional items rose by 9.6% in the year to 25th January 2014 to reach £376.4m.JLG300

Partnership gross sales grew to £10.17b which was a 6.6% increase on last year. Revenue, which is adjusted for sale or return sales, was £9.03b, rising £562.3m on the prior year. Like-for-like sales across the Partnership increased by 5.1%. As a result of the performance, the Partnership’s chairman Charlie Mayfield said the 91,000 partners working across John Lewis and Waitrose will receive a bonus of 15%, equivalent to nearly eight weeks pay.

Looking at John Lewis department store, gross sales grew strongly throughout the year, increasing by 7.5% in total and passing the £4b mark for the first time. Like-for-like sales grew by 6.4% while operating profit before restructuring costs rose by 11% to £240.5 million. The retailer incurred restructuring costs of £14.4m relating to the streamlining of its department store management structures and the future closure of its Park Royal distribution centre. Operating profit including these costs was up 4.3% to £226.1m.

The Partnership said its omnichannel capability and innovation had been key to the department store’s success leading to growth in both its shops and online. Sales at johnlewis.com rose by 19.2% to £1.1b with click & collect sales achieving an uplift of 57%. Mobile sales also grew rapidly with visits from phones and tablets now accounting for 50% of traffic to johnlewis.com.

The retailer opened a new £97m distribution centre in the year which will begin operations in 2015 alongside the existing Magna Park site in Milton Keynes.

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