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FY16 sales up 3.2 percent but John Lewis cuts staff bonus by 6 percent

By Prachi Singh

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Management

In 2016/17 the John Lewis Partnership said that the group delivered sales growth with both Waitrose and John Lewis increasing their market shares and customer numbers. Partnership gross sales were 11.37billion pounds (13.81 billion dollars), an increase of 355.4 million pounds (431 million dollars) or 3.2 percent, on last year. Revenue was 10.03 billion pounds (12.18 billion dollars), up by 277.4 million pounds (336 million dollars) or 2.8 percent. Gross sales at John Lewis were up 4 percent to 4.74 billion pounds (5.75 billion dollars), with like-for- like sales growth of 2.7 percent.

Commenting on the preliminary results, Sir Charlie Mayfield, Chairman of John Lewis Partnership, said in a statement, "Our profits before exceptionals are up 21.2 percent. A large part of this profit increase was due to lower pension accounting charges. After excluding these and our long leave accounting charges, our profits before exceptionals increased by 1.9 percent in spite of trading pressures and investment in pay. The Board has awarded a bonus of 6 percent, which is equivalent to more than 3 weeks’ pay. Bonus is lower because the Board has decided to retain more of our annual profits in order to strengthen our balance sheet.”

John Lewis fashion sales grow 3.8 percent

Fashion sales were up 3.8 percent. The company’s first private-brand luxury label, Modern Rarity, boosted its own-brand womenswear sales up 6.8 percent. John Lewis was the first high street retailer to stock online brands Hush and Finery during the year. A 9 million pounds (10 million dollars) investment in the company’s beauty halls helped beauty sales increase by 6.7 percent.

EHT sales were up 6.8 percent. The company said, opening of Smart Home areas in three shops, led to a 16.7 percent increase for audio and Smart Home and new products such as the Dyson Supersonic hairdryer and an exclusive high street launch of the Oculus Rift helped to drive sales. Home sales were up 3 percent.

Operating profit before exceptional items was slightly down at 243.2 million pounds (295 million dollars), 2.8 percent lower than last year. The company invested in its supply chain to ensure that it was able to support a large, faster and more convenient multi-channel business and this showed in the second half of the year, as the investments led operating profit before exceptional items rise 3.8 percent. Exceptional items were a charge of 11.8 million pounds, and after including these, the full year operating profit was down 7.5 percent to 231.4 million pounds (281 million dollars).

For the first five weeks of the year, Partnership gross sales are up 0.5 percent on last year, while John Lewis gross sales are up 0.5 percent but down 1.4 percent on like-for-like basis.

Picture:John Lewis

John Lewis Partnership