UK: Online boosts John Lewis full-year profit growth
- Group FY pre-tax profit up 4.1%
- John Lewis sales passed GBP4bn mark
- Fashion sales increased 5%
John Lewis sales passed the GBP4bn mark for the first time last year
UK department store operator John Lewis has recorded an increase in full-year profit, driven by strong online growth and innovation.
The group today (6 March) said pre-tax profit rose 4.1% to GBP329.1m (US$550m) for the 52 weeks to 25 January, compared to the same period in the prior year. Sales increased 6.6% to GBP10.17bn, but operating profit fell 6.6% to GBP423.6m.
Excluding the company's Waitrose supermarket chain, John Lewis department stores saw operating profit rise 4.3% to GBP226.1m. Sales increased 7.5% to GBP4.06bn - passing the GBP4bn mark for the first time - while like-for-like sales grew by 6.4%.
Fashion sales were up 5%, helped by the expansion of its Kin label and the success of brands such as Somerset by Alice Temperley and John Lewis & Co.
John Lewis said omni-channel capability and innovation was key to its success. During the year, its stores significantly outperformed the high street and online sales were up 19.2% to GBP1.1bn.
Chairman Charlie Mayfield said: "This has been another good year for the Partnership."
He added: "Innovation in product and service continues to be vital in today's market and there have been great examples of that in Waitrose and John Lewis.
"We have improved our omni-channel offer significantly with new online platforms for both brands and expansion of the hugely popular Click & collect service."
The current year has started well with good trading momentum, the company said. During the first five weeks, overall group sales grew 5.3%, while John Lewis reported a 5.7% increase, with like-for-likes up 5.3% on last year.
"There are more encouraging signs for the economy as a whole and, although this has not yet come through as a significant increase in consumer spending, I am cautiously optimistic that we will see improvements this year," Mayfield added.
"I am confident that however quickly the UK economy emerges from this prolonged period of slow growth, the Partnership is well positioned to continue to strengthen its competitive position and to grow market share in both Waitrose and John Lewis."
John Lewis Partnership Plc registered only minimal growth in profits in 2011/12 due to the costs of the introduction of new outlets and the tough trading conditions engendered by the recession. Howeve...
More than 170 companies have now signed the Accord on Fire and Building Safety in Bangladesh following the collapse of the Rana Plaza factory building in Dhaka, which killed more than 1,100 people las...
This report provides an update of business news in the following categories: acquisitions, divestments and mergers; company rebranding; company restructuring; corporate social responsibility (CSR); fi...
This report provides an update of business news in the following categories: acquisitions, divestments and mergers; corporate social responsibility (CSR); financial results; international trade policy...
The UK’s department stores are investing in the modernisation of their outlets with the aim of making them more attractive to consumers and incorporate aspects of multichannel retailing more effective...
- Africa courts clothing and textile investment
- Li & Fung capital helps PLM firm expand into Asia
- ANALYSIS: New pricing strategy pays off for Nike
- Bangladesh Accord calls on firms for more funding
- The current state of play in world garment exports
- Adidas investigating Cambodia faintings
- Footwear “facing increased compliance challenges"
- Matalan defends its position on Bangladesh
- Arrests made at US REI/North Face protests
- North Face commits to 100% recycled polyester
- Textile Wholesaling in the UK - Industry Market Research Report
- Global market review of denim and jeanswear – forecasts to 2020
- Plunkett's Apparel & Textiles Industry Almanac 2014: Apparel & Textiles Industry Market Research, Statistics, Trends & Leading Companies
- Survey of the European Fabric Fairs: Spring/Summer 2015
- Myanmar - ISA Country Report