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FY16 operating profit up 18% at John Lewis Partnership

12 Mar '16

3 min read

For the 53 week period ended January 30, 2016, operating profit at UK based apparel retailer John Lewis Partnership was up 18 per cent year on year.

In a press release, the company said its operating profit was £531.4 million, up £81.2 million or 18 per cent over the last fiscal, but was up 19.8 per cent on a 52 week basis.

This includes exceptional income of £129.3 million following the sale of the Clearings building and income of £7.9 million from release of remaining liabilities following the 2013/14 review of holiday pay policy.

However, its operating profit, before exceptional items, was £402.1 million, down £40.2 million or 9.1 per cent from a fiscal ago period.

In fiscal 2016, gross sales inclusive of VAT amounted to £11.02 billion, an increase of £76.2 million or 0.7 per cent, but grew 2.5 per cent on a 52 week basis.

Revenue, which is adjusted for sale or return sales and excludes VAT, was £9.75 billion, up by £47.8 million or 0.5 per cent, but 2.2 per cent on a 52 week basis.

Profit before bonus and tax totaled £434.8 million, a rise of £84.2 million or 24.0 per cent over the prior fiscal and 26.1 per cent on a 52 week basis.

Excluding exceptional items, profit before bonus and tax was £305.5 million, down £37.2 million or 10.9 per cent and also down 9.3 per cent on a 52 week basis.

“Our partners, as co-owners, each receive the same percentage of pay as partnership bonus, which varies from year to year reflecting the performance of our business,” the company explained.

The retailer further added that partners will share £145.0 million in profit, which represents 10 per cent of pay or the equivalent of more than five weeks' pay.

In total, the company has invested £452 million in benefits to its partners, including partnership bonus, pensions, partner discount, catering subsidy, long service leave, leisure spending and running of five holiday centres.

The fashion division, John Lewis reported growth in gross sales of 2.8 per cent in the reporting fiscal to £4.56 billion, but 4.4 per cent on a 52 week basis.

“To ensure that customers can shop with us whenever and however they want, we have continued to invest in our shops, website and infrastructure,” the company stated.

Operating profit for the division was down 0.1 per cent to £250.2 million, but up 0.2 per cent on a 52 week basis, but excluding property profits it was up 0.4 per cent and 0.7 per cent on a 52 week basis.

“The operating profit was however held back by restructuring costs and absorbing a greater share of centrally incurred functional costs,” John Lewis Partnership observed. (AR)

Fibre2Fashion News Desk – India

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