The John Lewis Partnership (JLP), home to Waitrose and John Lewis, has reported an improvement in financial performance for 2025/26. Partnership sales increased to £13.4b, up 5% YoY. Operating profit margin improved slightly to 2.1%, and cash generated from operations was £595m, up £63m YoY.
PBT, bonus and exceptional items increased to £134m, up 6% from £126m in 2024/25, "supported by strong customer metrics and a disciplined approach to operating performance".
The partnership says YoY profit growth was held back by headwinds of £53m from non-LFL taxation, comprising £13m from the new Extended Producer Responsibility packaging levy and £40m from higher National Insurance Contributions, as well as higher promotional mix as customers spent more cautiously, especially in the run-up to the peak period.
The partnership's ultimate loss before tax of £21m (from a profit of £97m in 2024/25) included exceptional charges of £120m, primarily relating to write-downs of legacy systems, as the partnership modernised technology to drive growth.
John Lewis continued to execute its customer-focused omnichannel strategy, delivering sales of £4.9b, up 3% on last year. Customer engagement strengthened through the year, with NPS reaching a record level. Adjusted operating profit was £58m, up £13m.
During 2025/26, JPS invested 26% more YoY in its stores, technology, supply chain and wider brand initiatives, while exiting its Build-to-Rent property business (see related).
JLP chairman Jason Tarry says: “Our multi-year plan to invest in customers and our brands for the long term is working – we have grown customer numbers and achieved record satisfaction. Despite a subdued market, a challenging lead into the crucial peak period and increased taxes, we took the decision to continue investing in the business, and have delivered cash and profit growth.
“There is much still to do, but our growing cash generation and strong balance sheet enable us to invest more in our brands and our partners to improve the experience for our customers. I'm really grateful for the commitment and passion our partners bring and, alongside our continued investment in partner pay, we’re pleased to be in a position to award a 2% partnership bonus. We remain on track to make further progress this year.”
The group concludes: "We remain cautious in our outlook for trading in 2026/27. Despite this, we are well positioned to navigate the challenging macroeconomic environment, with improved liquidity and low levels of external borrowings. This allows us to continue investing in our retail-first strategy, which will benefit our customers and unlock the headroom we see in all of our brands. We are confident in making further steps forward in the year ahead as we progress our multi-year transformation."
