John Lewis has described its latest half-year financial results as a “marked improvement” after several years of recorded losses.

The department store saw sales jump by two per cent to £5.9 billion, while pre-tax losses declined by 91 per cent from £57 million in 2023 to £5 million.

The retailer, which returned to profit last year after recording a loss of £234 million in 2022, said it now anticipates “significantly higher profits” for 2024.

John Lewis chief executive Nish Kankiwala said that the company’s results confirm that its multi-year transformation plan is working.

“While we have much more to do, we’re well set up for a positive peak trading period and on target to significantly improve our performance for the full year,” continued Kankiwala.

The company’s transformation plan focuses on improving productivity and efficiency, and is expected to achieve cost savings of around £600 million.

Last year, the strategy was pushed back by two years after the organisation faced costs of £179 million due to rising inflation.

John Lewis now expects to complete its Partnership Plan by 2027/2028.

In January, the John Lewis Partnership has warned staff that they may face smaller pay rises as part of a proposal to “reset” the company’s salary policies.

According to a report from the Times, the partnership consulted on changes to its constitution in an effort to make the business more flexible and sustainable.

The company reportedly told staff that the proposals would mean that fewer staff were likely to qualify for the highest tier of salary raises in the future, with the company needing to “radically shift” how it decides performance-linked pay rises.

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