The John Lewis Partnership, home to John Lewis and Waitrose, has reported a growth in sales.
According to its Unaudited Full Year Results for the 53 weeks ended 31 January 2026, partnership sales rose 5% to £13.4bn.
Operating profit margin improved slightly to 2.1% and cash generated from operations was £595m, up £63m year-on-year.
Profit before tax, bonus and exceptional items increased to £134m, up 6% from £126m in 2024/25, supported by strong customer metrics and a disciplined approach to operating performance.
“Year-on-year profit growth was held back by headwinds of £53m from non-like-for-like taxation, comprising £13m from the new Extended Producer Responsibility packaging levy and £40m from higher National Insurance Contributions, as well as higher promotional mix as customers spent more cautiously, especially in the run up to the peak period,” the group said.
“Loss before tax of £21m (2024/25: profit £97m) includes exceptional charges of £120m (2024/25: £29m). The significant majority of exceptional charges were non-cash. These primarily relate to write downs of legacy systems, as we modernise technology to drive future growth.”
John Lewis continued to execute its customer-focused omnichannel strategy, delivering sales of £4.9bn, up 3% on last year. Adjusted operating profit was £58m, up £13m, with operating margin improving 32 bps to 1.6%.
During the year, John Lewis improved the in-store experience for its customers as part of its multi-year investment in its estate, with major refurbishments during the year in Liverpool and Bluewater, and beauty expansions in Solihull, Welwyn Garden City and Cambridge.
Looking ahead, the Partnership said it remains cautious for trading in 2026/27. “We are well positioned to navigate the challenging macroeconomic environment, with improved liquidity and low levels of external borrowings.
“This allows us to continue investing in our retail-first strategy, which will benefit our customers and unlock the headroom we see in all of our brands. We are confident in making further steps forward in the year ahead as we progress our multi-year transformation.”
Jason Tarry, Chairman of the John Lewis Partnership, commented: “Our multi-year plan to invest in customers and our brands for the long term is working; we have grown customer numbers and achieved record satisfaction. Despite a subdued market, a challenging lead into the crucial peak period and increased taxes, we took the decision to continue investing in the business, and have delivered cash and profit growth.
“There is much still to do, but our growing cash generation and strong balance sheet enable us to invest more in our brands and our Partners to improve the experience for our customers. I’m really grateful for the commitment and passion our Partners bring and, alongside our continued investment in Partner pay, we’re pleased to be in a position to award a 2% Partnership Bonus. We remain on track to make further progress this year.”
