John Lewis has said its recovery is on track, forecasting "significantly higher" profits as its turnaround effort continues.
The partnership, which owns John Lewis and Waitrose, reported that losses before tax and exceptional items fell by 91%, from more than £50m to just £5m. Revenues increased 2% to £5.2bn.
Sales declined at John Lewis department stores by 3%, something the firm blamed on encountering a "challenging market".
CEO Nish Kankiwala commented: “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.”
The retailer has struggled since the pandemic, shutting a number of stores and cutting jobs across the country.
It returned to profit in 2023, but failed to pay staff a bonus for the second year running.
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Companies reporting today