John Lewis sees £111m profit but warns over headwinds

 
City A.M. Reporter
John Lewis said trading conditions would likely get tougher as tax hikes and public spending cuts hit shoppers, as it reported a 28 per cent rise in first-half profit.

The group said its strong first-half performance gave it confidence that both its department stores grocery chain Waitrose would cope well.

"Despite the economic headwinds, and tougher comparables in the second half, we remain confident that both Waitrose and John Lewis will continue to grow ahead of the market," chairman Charlie Mayfield said.

John Lewis, which runs 28 department stores, two "at home" shops and 231 Waitrose supermarkes, made a pre-tax profit of £111m in the six months to 31 July.

Sales rose 12.4 per cent to £3.8bn, and were up 9.9 per cent in the first six weeks of its second half.