John Lewis has forecast “significantly higher” profits this year as the retail giant’s turnaround strategy yields results.
The partnership, which owns department stores as well as Waitrose supermarkets, said there had been a “marked improvement” in its performance.
Losses before tax and exceptional items narrowed by 91pc to £5m in the six months to July. Revenues were up 2pc to hit £5.2bn, with Waitrose recording its tenth consecutive quarter of customer growth.
John Lewis department stores recorded a sales decline of 3pc after encountering a “challenging market” amid the cost of living crunch.
Nish Kankiwala, the chief executive, said: “These results confirm that our transformation plan is working and we expect profits to grow significantly for the full year, a marked improvement from where we were two years ago.”
It came as the partnership said it was on track with its turnaround efforts.
John Lewis returned to a profit last year for the first time since the pandemic, recording a pre-tax profit of £56m for the year to the end of January, compared to a £234m loss the previous year.
It typically makes the majority of its profits during the run up to Christmas, with bosses forecasting a rise in profit in the current financial year.
It follows a renewed focus on its high street stores after years of trying to diversify away from retail.
Dame Sharon White, who steps down as chairman this month, had set a target of making 40pc of profits in areas outside of the high street by 2030, including housing and financial services.