John Lewis reports a 60% surge in half-year profits

Deputy Business Editor

Friday 14 September 2012

THE John Lewis Partnership has reported a near 60% surge in half-year profits from £90.4 million to £144.5m.

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Greig Cameron Deputy Business Editor

Sales in the six months to July 28 this year increased 8.7% to £4.4 billion, with both Waitrose and John Lewis department stores seeing greater income.

Scottish John Lewis stores performed strongly, with Glasgow 1.3% ahead, Edinburgh 0.6% and Aberdeen 2.6%.

Speaking on behalf of the Scottish shops, Kim Lowe, managing director of John Lewis Glasgow, said: "We have witnessed positive results over the past six months but there's no doubt we're still trading in a challenging environment. "We've remained resilient across a number of areas including electrical & home technology, fashion and home."Our ongoing investment in product innovation, brand partnerships, customer experience and our commitment to being never knowingly undersold, have all helped us to continue to gain market share."Gross John Lewis sales across the UK rose 12.8% to £1.6bn with like-for-like sales up 9.2% and operating profit soaring 188.6% to £45.6m.Charlie Mayfield, chairman, said John Lewis had won a greater market share while also being boosted by events such as the Diamond Jubilee and its role as official department store of the Olympic and Paralympic Games.Electricals and home technology sales were up almost 32% with the digital switchover in London highlighted as one factor for the growth.The home division was 6.2% up and fashion by 7.2%.Gross online sales increased 43.1% to £375.8m and now account for almost one-quarter of John Lewis's overall sales.Mr Mayfield said: "Our multi-channel operation continues to go from strength to strength, with customers appreciating the ease of shopping in a variety of channels from smartphones to in-store internet kiosks."At food retailer Waitrose, gross sales in the UK grew 6.6% to £2.8bn with like-for-like sales, excluding petrol, rising 2.2% and operating profit 28.9% ahead going from £110.2m to £142m.There are four Waitrose stores in Scotland – two in Edinburgh, one in Glasgow and one at Newton Mearns – with Stirling, Helensburgh and Milngavie being planned and constructed.The business support division, called Partnership Services, helped to find a productivity improvement of 7% in accounts payable and 3% in the payroll department.Capital spending was down 36% from £253.8m to £162.4m due to a lower number of Waitrose store openings. Net debt at the half-year point was £589.6m 22.5% lower than the £760.8m reported in July last year. Mr Mayfield said: "The partnership balance sheet is strong with substantial capacity to increase our borrowings should we wish to."

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John Lewis reports a 60% surge in half-year profits

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