LONDON, March 12 (Reuters) - British retailer the John Lewis Partnership on Thursday reported a 6% rise in full-year profit and said it would pay its staff a bonus for the first time in four years.
UK's John Lewis restores staff bonus but flags caution on trading outlook
John Lewis Partnership Reports Profit Rise and Restores Staff Bonus
By James Davey
LONDON, March 12 (Reuters) - British retailer the John Lewis Partnership reported a 6% rise in annual profit and restored its staff bonus after a four-year hiatus but said it was cautious on the trading outlook given a tough economic backdrop.
Bonus Restoration and Financial Performance
The UK's largest employee-owned business, which runs John Lewis department stores and the upmarket Waitrose supermarket chain, said on Thursday it would pay its workers, or partners as it calls them, a bonus of 2% of salary.
Outlook and Caution for 2026/27
"We remain cautious in our outlook for trading in 2026/27. Despite this, we are well positioned to navigate the challenging macroeconomic environment, with improved liquidity and low levels of external borrowings," the partnership said.
It said it was confident of making "further steps forward" in 2026/27.
Pessimistic UK Consumers and Market Conditions
Consumer Spending Trends
PESSIMISTIC UK CONSUMERS
British consumer spending grew slowly in February as households got more pessimistic about the outlook for the economy with the Middle East conflict raising concerns about a fresh rise in inflation, surveys showed on Tuesday.
Impact on Retail Rivals
On Monday, analysts at RBC cut their profit forecasts for John Lewis rival Marks & Spencer, saying the spike in oil and gas prices will likely drive up British households' food, transport and energy bills.
Detailed Financial Results
Annual Profit and Sales Breakdown
The partnership made a profit before tax, bonus and exceptional items of 134 million pounds ($179 million) in the year to January 31 2026, on sales up 5% to 13.4 billion pounds.
Performance by Division
Waitrose sales increased 7%, while department store sales were up 3%.
Leadership and Strategic Initiatives
Leadership Changes
Jason Tarry, the former Tesco executive who has chaired the partnership since 2024, is leading a revival after the department store division in particular had a difficult period, first battling the COVID-19 pandemic and then the cost-of-living crisis.
Investment and Modernisation Efforts
He has accelerated investment, with a focus on modernising John Lewis and Waitrose stores, enhancing digital platforms and improving the supply chain.
($1 = 0.7473 pounds)
(Reporting by James Davey; Editing by Kate Holton, Sarah Young and Emelia Sithole-Matarise)
