In the publication of its unaudited interim results, the John Lewis Partnership (JLP) has reported sales growth of 2% to £6.3b in the H1 ended 1st August 2026.
Loss before tax and exceptional items (LBTBE) was £89m, compared to £34m last year, "reflecting increased investment and a more challenging economic environment", says the partnership – yet it adds that customer satisfaction in its brands remains strong.
Investment in those brands was up 29% in H1 to £246m, with further store modernisations.
In part due to that investment, cash generated from operations was £131m, down £46m YoY. Liquidity stood at £1.4b, with external borrowings at historic lows, says the partnership, adding: "We are continuing to invest through a difficult economic environment and remain confident our investments are unlocking the commercial opportunity in our brands.
"Three dynamics affected financial performance in the half: deliberate choices to invest for the long term; tougher trading conditions, especially in general merchandise; and the increased costs of doing business."
Jason Tarry, chairman of JLP, says: “Our first-half results reflect our continued investment in our transformation, a more challenging trading environment and the increased costs of doing business. Partnership sales grew, customer satisfaction remains strong and the stores we’ve transformed are outperforming the rest of our estate. That gives us confidence in the commercial headroom for both Waitrose and John Lewis.
“We are managing the business with discipline and have chosen to keep investing in our customers, partners and the long-term strength of our brands. While losses grew in the half, our employee-owned model allows us to take that longer-term view, supported by our financial strength.
"As in every year, our profit is earned in the second half so our focus now is on serving customers brilliantly through our peak trading period.”
Underlying margin growth was delivered in both brands during H1, but weaker customer demand for larger discretionary purchases impacted John Lewis' sales, which were down 2% at £2b. JLP says the headline sales figure also "reflects more targeted promotional and clearance activity, supported by disciplined stock management, contributing to full-price sales growing by 5.5%, although we still invested more in promotions in response to the subdued market".
Adjusted operating loss was £83m, compared to £53m last year, "reflecting softer trading, cost growth and our decision to continue investing in the transformation of the brand".
Stores that have seen investment – including Glasgow, Cambridge, Leicester, Reading and Liverpool – outperformed the wider estate.
"There is no doubt the wider economic and geopolitical landscape has weighed on our customers during the first half and we remain cautious in our outlook for the second half," JLP concludes. "As in every year, the majority of our profit is earned in the second half, and the full-year outcome will be determined by peak trading.
"We are set up well for the second half. We remain focused on doing the right things for our customers and continuing to invest through the cycle. With peak ahead, we are excited about our plans across John Lewis and Waitrose and look forward to making the festive season special for all our customers."
