John Lewis continues to defy high street gloom
John Lewis ignored the travails of other high street retailers, posting a big jump in profits in the first half.
John Lewis ignored the travails of other high street retailers, posting a big jump in profits in the first half.
The firm was once known as a 'high street bellwether' as it gave an insight into general retail activity, but in recent times it has been more a beacon of hope for struggling firms.
The retail partnership made a pre-tax profit of £144.5m in the first half, up 60% from a year earlier.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
However, it warned it wouldn't keep this pace up during the second half.
Like-for-like sales at the John Lewis department stores - which strips out new openings - were up 9.2%, while Waitrose saw a 2.2% rise.
The most recent official figures showed that retail sales rose by 0.3% in July, when compared with June, and by 2.8% from a year earlier.
Revenue were up 8.6% to £3.9bn and the firm said that while consumer demand remained fragile, it had stabilised and it saw opportunities to grow market share.
Chairman Charlie Mayfield said the company had benefitted from a number of one-off events, such as the Diamond Jubilee, the lead up to the London 2012 Olympic and Paralympic Games and the anniversary of the VAT increase, which depressed sales last year.
John Lewis also benefitted from the launch of new product ranges as well as improvements to its online offering and efficiency savings.
"Our rate of growth will remain positive but will be slower in the second half," Mayfield said.
"With further investment planned in that period to strengthen our business for the longer term, the rapid rate of profit increase is not expected to be carried through to the full year."
The partnership noted that six weeks into the second half, gross sales were 10.3% higher than last year.
Waitrose gross sales had increased by 8.7% - 4.5% on a like-for-like basis - and John Lewis gross sales were 13.1% higher than last year, or 8.5% like-for-like.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Government launches full review of parental leave and pay – what could it mean for you?
The government wants parental leave to be fairer - will its shake-up fix the widespread problem for families?
-
Nationwide: House prices see biggest monthly fall in over two years
UK house prices dropped by 0.8% in June, according to Nationwide. We reveal the top-performing and worst-performing regions