March 21, 2018

John Lewis Partnership reports increase sales, but drop in profits

09 March 2018, 05:31 | Lena Norman

John Lewis cuts staff bonus as profits plunge

John Lewis cuts staff bonus for the fifth year in a row as it reports a fall in profits

Waitrose gross sales of £6.75bn were 1.8% ahead of last time, or 0.9% on a like-for-like basis, while John Lewis gross sales of £4.84bn were 2.2% up on past year, or 0.4% LFL.

"Partnership Bonus has been awarded at 5%".

It comes as the partnership - which owns the eponymous department store and upmarket supermarket Waitrose - posted a 77% plunge in bottom line pre-tax annual profits to £103.9m after one-off charges. Consumer demand was subdued and we made significant changes to operations across the Partnership which affected many partners.

Company chairman Sir Charlie Mayfield said it had been a "challenging year".

As a result, the retail group is anticipating further pressure on profits.

Although sales were up in both Waitrose (+1.8%) and John Lewis (2.2%) stores, the company says that profits declined sharply 2017, largely due to lower gross margins in Waitrose, driven by weaker exchange rates and commitment to competitive pricing.

Lower profit margins at the Waitrose driven by the fall in the value of the pound cut pretax profits by almost 22%.

Johnson calls Russian Federation 'malign and disruptive force'
England will be based near St Petersburg during the World Cup , where they have been drawn in a group with Tunisia, Panama and Belgium.

Waitrose achieved gross sales of £6.75 billion a year ago, up 1.8% compared to 2016, with like-for-like sales, excluding fuel, increasing by 0.9%.

Staff at John Lewis and Waitrose have been told how much they will be receiving in their annual bonus, the lowest sum in years.

John Lewis didn't provide margin figures but said margins were squeezed by its decision to not pass on cost inflation to its customers via price increases, and also by its investments in its customer experience.

John Lewis's poor end of year results reflect the hard times afflicting the United Kingdom retail sector, which is having to cope with weak consumer sentiment as well as currency swings following the UK's vote to leave the European Union.

Waitrose sales rose 1.8% to £6.75bn, up 1.8%, with sales at established stores, excluding fuel, up by 0.9%.

"This was why we chose to reduce the proportion of profits paid as Partnership Bonus past year so as to absorb these impacts while continuing to invest in the future and in strengthening our balance sheet".

The retailer also warned of further pressure on profits in the year ahead, the Telegraph reported, as well as "volatile" trading conditions, "continuing economic uncertainty" and intense competition.

Other News

Trending Now

Trump calls Oakland Mayor Libby Schaaf's warning a 'disgrace'
Trump also quoted the agency as saying that roughly 85 percent of those sought by ICE had criminal records. In his speech, Sessions praised the Trump administration's strong stance on enforcing immigration law.

A Luigi's Mansion remake is coming to 3DS this year
This version will even have a few advantages in that there will be the mansion map on the bottom screen and a boss rush mode. Luigi's Mansion will arrive on Nintendo 3DS sometime this year; Nintendo did not provide a more specific release window.

Firmino Erases Liverpool's In Champions League
This will be the 170th meeting in league competition between these sides - Manchester United have won 67 to Liverpool's 55. But I don't think it matters (who we get). "If you are in the draw, then you can not be afraid of anyone".

Leicester City's Riyad Mahrez Speaks About His Manchester City Transfer Saga
"There are always talks between me and the club, everything is good, so we will see in the summer if things come". When the team-mates and the club were behind me it was okay, it was very easy to come back here".

Telecom firms to get more time to pay for spectrum
The cabinet approved raising the overall spectrum cap per operator in a telecom circle to 35% from the current 25%. It also scrapped a rule that restricted operators from holding more than 50% spectrum in a single band in a circle.

Infidelity claim puts India bowler Shami's contract on hold
Indian fast bowler Mohammad Shami on Wednesday denied all allegations leveled by his wife Hasin Jahan and termed it "baseless". Jahan added that Shami's mother and brother had tortured her and also planned to kill her.

After Oreo, Developer Preview of Android P Arrives
Microsoft, with its "Continuum" mode had introduced a similar feature earlier. While Google had added the code back in 2016 itself, it was never enabled.

Life is Strange Before the Storm - Bonus Episode 'Farewell'
Farewell sees the return of Max Caulfield, the lead character of the original Life is odd . From the looks of it, the right time they mentioned then is closer than fans think.

China's February exports surge, trade surplus widens
Last month, India's Foreign Secretary Vijay Gokhale quietly visited Beijing and met Wang and China's top diplomat Yang Jiechi. He believes the World Trade Organisation allows unfair tax practices like value added tax that penalise American business.

Boston Celtics one win away from clinching trip to National Basketball Association playoffs
Point guard Kyle Lowry was content to supply the red-hot DeRozan with ammunition, contributing 15 assists as well as 15 points. So far on the season the Raptors are 1-0 vs Cleveland and 1-1 vs Boston with two games remaining against both of those teams.