John Lewis profits COLLAPSE by 50 per cent amid housing market downturn

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John Lewis profts would rather tumbled

Cost increases from the weaker pound have also hit profits, as half-year profits comprehended to £26.6 million.

The John Lewis partnership, which counts upmarket supermarket Waitrose as instances partly of the group, was also hit by exceptional item costs linked to restructuring, quiddity and redundancy.

Chairman Sir Charlie Mayfield said: «The first half of this year has seen inflationary weights driven by exchange rates and political uncertainty.»

«These have reduced customer demand, especially in categories connected to the housing market.

«The securities exchange rate-driven increase in cost prices has also put pressure on margin.»

Retailers participate in been among the hardest hit by the decline of the UK currency, which has resulted in bring ins and shop prices soaring, hurting consumer demand.

However, Sir Charlie added that the group has held back on enhancing prices across many areas.

And the chairman warned of more trial ahead.

He said: «Sales growth has continued in the first few weeks of the blemished half.

«We are well set for our all-important seasonal peak, but we expect the headwinds that have in the offing dampened consumer demand and put pressure on margins to continue into next year.»

Gross sales across the Partnership increased by 2.3 per cent to £5.4 billion, but like-for-like on offers showed only muted growth.

Like-for-like sales at Waitrose make it 0.7 per cent while at John Lewis comparable sales encouraged up just 0.1 per cent.

Stripping out exceptional items, profit formerly tax was down 4.6 per cent to £83 million, while operating profit descended 39 per cent to £69 million.

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