John Lewis Partnership profit down 75%
Sir Charlie Mayfield, chairman of the John Lewis Partnership, said the fall reflects "market conditions" and "steps we are taking to adapt the Partnership for the future".
In the first six months of the year, the Partnership delivered solid gross sales growth with both Waitrose and John Lewis increasing their market shares and customer numbers.
Partnership gross sales (inc VAT) were £5.27bn, an increase of £157.7m, or 3.1%, on last year. Revenue, which is adjusted for sale or return sales and excludes VAT, was £4.67bn, up by £124.2m or 2.7%.
Partnership operating profit was £113.7m, down £159.2m, or 58.3% on last year.
This includes an exceptional charge of £25.0m in Waitrose for the write-down of property assets no longer intended to be developed and related costs, following a strategic review re-prioritising future investment spend towards existing stores (2015/16: income of £128.0m following the sale of the Clearings building).
Excluding the exceptional items, operating profit was £138.7m, down £6.2m or 4.3% on last year. ■