British retailer John Lewis Partnership reported a trebling in annual profit, driven by a better performance in its food business, and forecast further growth this year, showing its turnaround plan has momentum.
The UK's largest employee-owned business, which runs John Lewis department stores and the upmarket Waitrose & Partners supermarket chain, said on it would invest up to £600 million ($776.82 million) in the business in 2025/26 in addition to £114 million in a 7.4% pay rise for 65,000 workers, or partners as it calls them.
However, for a third straight year it is not paying its partners an annual bonus.
The partnership made a profit before tax and exceptional items of £126 million in the year to 25 January, up from £42 million in 2023/24, on sales up 3% to £12.8 billion.
While it expects the macroeconomic environment 'to continue to be challenging' for its customers and business, it expects to see a further increase in profitability in 2025/26.
Jason Tarry, chair of the John Lewis Partnership, said, "These are solid results, which show that our customers are responding well to our investments in quality products, value and service. We have made good progress with much more still to do."
Waitrose & Partners
Waitrose & Partners reported sales growth of 4.4%, to £8.0 billion with volume growth of 2.6% as the grocer continued to see positive momentum.
The company attributed this growth to investment in Waitrose's quality food proposition and lower prices as well as with further improvements in technology and availability.
Adjusted operating profit amounted to £227 million, up £122 million, while operating margin doubled year-on-year to 3.0%.
Sales of Waitrose's own-brand products increased by 5.9%, while on-demand grocery sales increased by 110% during the year.
News by Reuters, additional reporting by ESM.
