John Lewis Partnership has published its unaudited interim results for the 26 weeks ended 26th July 2025. Partnership sales grew to £6.2b, an increase of +4% YoY, while total revenue grew 5% to £5.4b – yet the group saw a loss before tax and exceptionals of £34m.
It says the results were significantly impacted by costs not present in the equivalent prior period, including £29m for the new Extended Producer Responsibility (EPR) packaging levy, alongside higher NICs. On a LFL basis, loss before tax and exceptional items (LBTBE) was broadly flat compared to last year's £5m, the retailer notes.
However, customer satisfaction stood its highest recorded level, with both Waitrose and John Lewis outperforming their respective markets during the period (while My John Lewis loyalty scheme member numbers grew by +13%), and investment increased to £191m in the half, with "significant uplift" planned in H2.
Partnership chairman Jason Tarry says: “Our clear focus on accelerating investment in our customers and our brands is working – more customers are shopping with us, driving sales, and helping Waitrose and John Lewis outperform their markets. We achieved our highest recorded levels of positive customer satisfaction, a testament to the great service of our partners.
“The investments we are making, combined with our plans for peak trading, provide a strong foundation for the remainder of the year. While we are reporting a loss in the first half, we’re well positioned to deliver full year profit growth, which we’ll continue to invest in our customers and partners.”
The result also included a planned £30m of investment in operating costs – part of a strategy is set to accelerate investment in store upgrades, digital services and modernisations to the retailer's technology and supply chain.
"Our strong balance sheet allows us to make long-term investments from our own resources," the partnership explains. "Cash generated from operations was £177m, a £30m increase YoY. Our growing cash generation saw us end the half with £1.5b liquidity, further strengthened by renewing our revolving credit facility, now £460m for five years.
"We have stepped up investment in our customers and our brands this year, ahead of the all-important second half where we deliver the majority of our sales and profit. Our investments have helped build momentum over the first half, delivering growth in sales, customer numbers, loyalty and satisfaction. We have also increased both our cash generation and productivity savings, which will drive ongoing investment in our brands. While we expect the macroeconomic environment to remain challenging, our momentum, coupled with exciting plans for the second half, sees us well positioned to deliver full year profit growth."
John Lewis sales rose +2% to £2.1b. The period saw a major refurbishment of the Liverpool store, and the introduction of more omnichannel shopping options.
"Our first half investment allows us to look forward with confidence; our focus is now heading into peak where we see significant opportunity for all our core assortments," the retailer concludes.
