- Prachi Singh |
In the first half period to July 29, 2017, John Lewis delivered gross sales of 2.07 billion pounds (2.73 billion dollars), up 2.3 percent and like-for-like sales growth of 0.1 percent. In the first half year, fashion was up 3.5 percent. Operating profit before exceptional items increased by 38.7 percent to 50.2million pounds (66 million dollars), which included property profits of 10.5 million pounds (13.8 million dollars), and after excluding these, it grew 9.7 percent to 39.7million pounds (52.4 million dollars).
Commenting on the interim results for the first six months, Sir Charlie Mayfield, Chairman of John Lewis Partnership, said in a press release: “Sales growth has continued in the first few weeks of the second half. But we expect the headwinds that have dampened consumer demand and put pressure on margins to continue into next year. In addition, we will incur higher pension accounting charges in the second half year, as a result of low market interest rates. These will all impact our full year profits.”
Highlights of John Lewis H1 trading
Sales during the clearance period were strong, and rose 4.5 percent compared to last year, with EHT a standout up 8.1 percent. In the first half year, fashion was up 3.5 percent, gaining market share, with strong performances in womenswear, up 5.8 percent, and beauty, up 10 percent, while home sales remained flat. EHT was up 2.5 percent, supported by strong sales in communication technology, up 10.4 percent, with wearable technology, mobile, and imaging performing well.
Online sales represented 37.3 percent of total merchandise sales, up from 34.5 percent last year. The company rolled out mobile-optimised online buying guides and plans to launch digital myJL gift vouchers available to customers via its app later this year.
The company also integrated fashion into its 50,000 sq. ft. photography and content studio based in Origin Park, London, enabling it to respond faster to the growing customer demand for inspirational, design-led content.
The company operates 48 John Lewis shops across the UK apart from an online platform Johnlewis.com and business to business contracts in the UK and abroad.
Picture:John Lewis website