John Lewis staff miss out on bonus for third year running despite increase in profits

On an underlying basis, profits tripled to £126m from £42m a year ago.

But the group said it would not pay out a bonus once again for its workforce of around 73,000 people, instead saying it would prioritise another £114m in overall pay and up to £600m of investment in the business.

It said: “After careful consideration, we have prioritised this investment over sharing a bonus this year.”

The group said it expects a further rise in profits in the 2025-26 financial year, despite cautioning that it expects the wider economic backdrop “to be challenging for our customers and our business”.

Jason Tarry, Chairman of the John Lewis Partnership, said: “These are solid results, which show that our customers are responding well to our investments in quality products, value and service. We have made good progress with much more still to do.

“Looking forward, I see significant opportunity for growth from both our Waitrose and John Lewis brands. Our focus will be on enhancing what makes these brands truly special for our customers.

"This will involve considerable catch-up investment in our stores and supply chain, underpinned by a strong focus on the core elements of great retail, delivered by our brilliant Partners.

“Our distinct Partnership model stands out as a key competitive differentiator, enabling us to adopt a long-term perspective.

"I am confident with the transformation momentum in the Partnership, we remain well placed to drive further growth in the year ahead and over the longer term - creating a Partnership that our customers and Partners are truly proud of.”

Nish Kankiwala, CEO of the John Lewis Partnership, said: "I want to thank all of our Partners for their incredible hard work this year and our customers for their loyalty, both of which led to continued momentum through the year and especially over Christmas.

“Tripling our profit is a significant testament to the progress of our transformation - focused on delighting customers while continuing to deliver efficiency improvements, thereby laying the foundations for long-term sustainable growth.

“Both brands are showing good momentum. Our strategic investments in product innovation, quality, service and value have yielded significant improvements in customer satisfaction, attracting more customers to shop with us.”

"As I step down after two years as CEO, which has been an incredible privilege, I want to express my gratitude to our Partners who have shown amazing commitment to our refreshed plan.

"I am confident in the Partnership's continued success given the momentum we have built and the opportunities that lie ahead."

John Lewis Partnership said its balance sheet remained strong and total liquidity closed the year at £1.5bn.

The statement added: “We have the lowest levels of borrowings since 2002 after repaying a £300m bond in January 2025. We made recurring productivity savings of £255m this year, while growing customer satisfaction, with total benefits of £667m realised since 2021, on track towards our £900m target by January 2026.”