In its unaudited full-year (ended 25th January 2025) results, the John Lewis Partnership has reported a significant improvement in financial performance for 2024/25 as PBT and exceptional items tripled from £42m to £126m – and PBT increased by +73%, from £56m to £97m.
Partnership sales were £12.8b, up +3% YoY. Operating profit margin increased +0.9 percentage points to 2.0%, and cash generated from operations was £532m, up £99m (+23%) YoY.
Customer numbers grew by +2% over the year, and John Lewis saw growth in its loyalty scheme, with My John Lewis customers up +11% to 3.7 million.
"We invested a third more in 2024/25 in our business than the prior year," states the retailer, "and intend to step up our transformation plan in the year ahead, backed by planned self-funded investment of £600m. We will continue to invest in improving the customer experience through store refurbishments and openings, technology upgrades and supply chain modernisation."
The balance sheet remains strong, with total liquidity closing the year at £1.5b and the lowest levels of borrowings since 2002, after repaying a £300m bond in January 2025.
"We made recurring productivity savings of £255m this year, while growing customer satisfaction, with total benefits of £667m realised since 2021, on track towards our £900m target by January 2026," the partnership continues.
"As employee-owners, we have a shared responsibility to ensure the partnership is sustainable over the long term. We've consistently said that at this point in our transformation, this is best served by investing in our retail businesses and in partners' base pay. So after careful consideration, we do not believe it would be right to award a partnership bonus this year. We are increasing overall pay by £114m in 2025, building on the £116m increase in 2024."
Sales at John Lewis were in line with last year, at £4.8b and "ahead of the market, with momentum building across the year.
"Adjusted operating profit was £45m. This year has been pivotal for our business in what remains a challenging environment for the sector. We have taken steps to invest in the performance of John Lewis. Our focus has been on providing even better value through the return of the Never Knowingly Undersold promise, improved customer service and better product ranges.
"The strategy has shown early success, with the business experiencing contrasting halves within the year. The first half saw a -3% decrease in sales and a £24m drop in adjusted operating profit due to investments in growth. Marked improvement in the second half led to a +3% increase in sales and £8m growth in adjusted operating profit, creating momentum for the future."
Other notable developments included branded shop fits across Home and Fashion, improved technologies and enhanced ‘deliver from store’ fulfilment.
"While we expect the macroeconomic environment to continue to be challenging for our customers and our business, we are confident in our strategy," the partnership adds. "Our improved cash generation and strong liquidity allow us to invest significantly in the year ahead – a planned £600m – to enhance our customer proposition.
"We are making solid progress and have much more to achieve. By relentlessly focusing on our customers’ needs, delivered by our brilliant partners, we will pursue the headroom for growth that exists in our retail brands. We expect to see a further increase in profitability in 2025/26."
Jason Tarry, chairman of the John Lewis Partnership, says: “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.
“Looking forward, I see significant opportunity for growth from both our Waitrose and John Lewis brands. Our focus will be on enhancing what makes these brands truly special for our customers. This will involve considerable catch-up investment in our stores and supply chain, underpinned by a strong focus on the core elements of great retail, delivered by our brilliant partners.
“Our distinct partnership model stands out as a key competitive differentiator, enabling us to adopt a long-term perspective. I am confident with the transformation momentum in the partnership, we remain well placed to drive further growth in the year ahead and over the longer term – creating a partnership that our customers and partners are truly proud of.”
Nish Kankiwala, CEO of the John Lewis Partnership, adds: "I want to thank all of our partners for their incredible hard work this year and our customers for their loyalty, both of which led to continued momentum through the year and especially over Christmas. Tripling our profit is a significant testament to the progress of our transformation – focused on delighting customers while continuing to deliver efficiency improvements, thereby laying the foundations for long-term sustainable growth.
“Both brands are showing good momentum. Our strategic investments in product innovation, quality, service and value have yielded significant improvements in customer satisfaction, attracting more customers to shop with us.
"As I step down after two years as CEO, which has been an incredible privilege, I want to express my gratitude to our partners who have shown amazing commitment to our refreshed plan. I am confident in the partnership's continued success given the momentum we have built and the opportunities that lie ahead."
Commenting on the announcement, Julie Palmer, partner at Begbies Traynor, says: “It is encouraging to see profits rebound at JLP after years of slow momentum. However, there remains a long road ahead if the retailer is to win back the market share it lost to M&S and other rivals in the battle for Middle England’s consumers.
“New chair Jason Tarry is certainly sounding the right notes. The opening of new Waitrose stores, the reintroduction of John Lewis’s Never Knowingly Undersold guarantee and an inflation-beating £114m investment into staff pay, should all bode well for the partnership.
“However, the new chairman may have a tricky task ahead to communicate to his partners why it is important to prioritise investment over a staff bonus once again. Even with the very positive pay rise and profit news, this means the chairman's challenge is far from over."
