Published September 11, 2025
John Lewis Partnership Unaudited Interim Results for the 26 Weeks Ended 26 July 2025
Investing for customers and on track for full year profit growth
- Partnership sales1 grew to £6.2bn, an increase of 4% year-on-year
- Customer satisfaction at its highest recorded level. Both Waitrose and John Lewis outperformed their respective markets in the period
- Cash generated from operations2 was £177m, a £30m increase year-on-year
- Investment increased to £191m in the half, with significant uplift planned in the second half
- Loss before tax and exceptionals3 of £34m, stepped back from last year due to non-like-for-like taxation costs and a planned step up in investment costs
Financial and operational review
The first half results show positive momentum across the John Lewis Partnership as a direct result of our customer-focused investments.
Our strategy is to invest in our customer experience to drive long-term, sustainable growth. In the first half, we adopted a deliberate strategy to accelerate investment in store upgrades, digital services and essential modernisations to our technology and supply chain.
These investments are showing good progress, delivering growth in sales, volumes, customer numbers and market share in the first half. Partnership sales were £6.2bn, an increase of 4% year-on-year, while total revenue grew 5% to £5.4bn. We achieved our highest recorded level of positive customer satisfaction in the half, attracted more customers, with customer numbers up 4%, and saw pleasing growth in our loyalty schemes, My Waitrose (up 6%) and My John Lewis (up 13%).
Our strong balance sheet allows us to make long-term investments from our own resources. Cash generated from operations was £177m, a £30m increase year-on-year. Our growing cash generation saw us end the half with £1.5bn liquidity, further strengthened by renewing our revolving credit facility, now £460m for five years. This financial strength gives us the ability to continue to self-fund our investment plans, reflected in £191m investment in the half, with a significant uplift planned in the second half.
We reported a loss before tax and exceptional items (LBTBE) of £34m for the first half. This result was significantly impacted by costs not present in the equivalent prior period, including £29m of costs for the new Extended Producer Responsibility (EPR) packaging levy (where we took the full annual cost in our first half results), alongside higher National Insurance Contributions (NICs).
On a like-for-like basis, our loss before tax and exceptional items (LBTBE) was broadly flat compared to last year’s £5m. This stable result also includes a planned £30m of strategic investment in operating costs targeted at technology, financial services, and our central teams to accelerate our growth. While this impacts profitability in the short term, it is a foundational part of our strategy for the benefit of our customers and Partners. Our strong cash generation and liquidity, combined with our ability to take a long-term perspective, enables us to make these crucial investments to support our growth in the second half and for years to come. Loss before tax in the half was £88m, inclusive of £54m of exceptional items relating to our ongoing transformation and non-cash asset impairments.
Outlook
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.
Waitrose performed ahead of the market with sales surpassing £4bn in the first half for the first time. This performance was driven by a 6% increase in sales to £4.1bn and a 3% rise in volumes, with almost all growth like-for-like. Reflecting the brand’s appeal, we recorded another period of customer growth in the first half, with 9%4 more people now shopping with Waitrose than two years ago.
This performance was driven by investment in quality food, physical stores and technology. We saw our highest recorded customer satisfaction scores this half, and our commitment to service was recognised with us winning The Grocer Gold Award for Customer Service for the fourth year in a row and, for the first time ever, the Award for Product Availability, reflecting the successful transformation of our forecasting and ordering systems.
We reinforced our ethical credentials by becoming the first UK supermarket to meet the Better Chicken Commitment, launched 130 new products, and saw strong growth in our No.1 and Duchy Organic ranges. We completed seven major refurbishments, opened one new convenience store, two new Welcome Break shops, and announced both our first large store opening in almost a decade, and a new distribution centre. Adjusted operating profit5 was £110m in the first half, down £3m, with sales growth and margin progress, combined with productivity improvements offsetting incremental non-like-for-like taxation costs of £22m from the new EPR packaging levy and incremental NICs.
John Lewis sales rose 2% to £2.1bn, outperforming a market impacted by ongoing economic uncertainty. We have attracted more customers through our commitment to offering quality, style and value, which has resonated strongly. We achieved our highest recorded customer sentiment scores and were named best retailer by both Which? and the UK Customer Satisfaction Index.
Our strategic initiatives are gaining positive momentum, with our sharpened focus on our customer proposition driving growth. We continued to invest for the long term, through a major refurbishment of our Liverpool store, more omnichannel shopping options including ‘deliver from store’ and rapid online delivery and – last year – the return of our 100 year old Never Knowingly Undersold promise, which has continued to drive sales, relevance and value for money perceptions.
These investments and a renewed focus on compelling value, compounded by a sales mix shift towards Technology and Beauty, impacted gross margin in the short term. Adjusted operating loss was £53m in the first half, down £4m, including incremental non-like-for-like taxation costs of £7m from the new EPR packaging levy and incremental NICs. 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.
