Anticipated Improvement: John Lewis Expected to Narrow Losses Despite Facing Triple Whammy

Confidence vote: Chairwoman Sharon White

John Lewis is poised to unveil its latest financial results, led by new CEO Nish Kankiwala, showing a reduction in losses despite facing challenges from the pandemic, inflation, and cost-of-living pressures. As compared to the £99 million loss reported in the same period last year, the losses in the six months to July are expected to be lower.

Kankiwala is likely to emphasize that it is not uncommon for John Lewis to experience a loss in the first half, as the holiday season significantly impacts their business. However, he will express caution regarding the future of trading.

This will be the first financial report following the confidence vote in May, where Chairwoman Dame Sharon White retained her position.

John Lewis incurred losses of £234 million last year and informed its 74,000 staff, referred to as partners, that they would not receive their annual bonus. The company also faces a £1.7 billion debt and a £69 million pension fund deficit. Earlier this year, there were reports suggesting that the business might dilute the partnership to attract new investors.

However, Kankiwala expressed his commitment to preserving the mutual status of the company in an interview with The Mail on Sunday. He believes in a business model that promotes long-term sustainability and shared rewards for everyone in the company, and he considers the partnership model to be superior.