John Lewis pushed to a loss after paying first staff bonus in four years

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into the red in its most recent financial year to the end of January, making a £21m pre-tax loss compared to a pre-tax profit of £97m a year earlier.It came after it opted to pay a 2pc bonus to all workers, marking the first time since 2022 it has made an award.The bonus payment is understood to have cost John Lewis £35m, without which the company would have made a profit. Bonuses are equivalent to a week’s worth of pay for staff.The decision to restore the award to its 65,000 staff follows years in which John Lewis argued it needed to instead prioritise investment in its stores and in wider pay levels to help fuel a turnaround drive.Four years ago, staff at both John Lewis and its sister company Waitrose received a 3pc partnership bonus.John Lewis previously said it would need to see a recovery in profits before reviving the bonus. It suggested to staff earlier this year it could make an award if profits before tax, bonuses and exceptional items hit £200m last year.However, in its latest annual results, published on Thursday, John Lewis said profits before tax, bonuses and exceptional items came in at just £134m in the year to January, up 6pc on £126m a year earlier.Jason Tarry, John Lewis’s chairman, said that, although the company missed its target, its “growing cash generation and strong balance sheet enable us to invest more” in its staff and its brands.Workers said the bonus was a “real surprise”, claiming they saw it as an effort to boost staff morale. Employees previously signed a petition demanding the return of annual bonuses.Mr Tarry said results had been affected by “a subdued market, a challenging lead into the crucial peak period and increased taxes”.It follows a wave of raids on retailers by Rachel Reeves, the Chancellor, over the past year. John Lewis said it faced a £53m blow from higher National Insurance contributions and new recycling levies.John Lewis did not provide in-depth figures for other measurements, including lease liabilities and finance costs.Before Mr Tarry joined the retailer in late 2024, John Lewis had released more detail as part of its unaudited results. However, its financial statement was just more than three pages this year – compared to 12 pages for its 2024 results and 20 pages for 2023.A full audited financial report is set to be released within weeks.Nick Bubb, a retail analyst, said he was disappointed by John Lewis’s decision not to provide an update on the January trading period, like other retailers.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,632.19 -40.43 (-0.61%)Dow 3046,558.47 -119.38 (-0.26%)Nasdaq22,105.36 -206.62 (-0.93%)Russell 20002,480.05 -8.94 (-0.36%)VIX27.19 -0.10 (-0.37%)Gold5,023.10 -102.70 (-2.00%)Trending tickersADBE Adobe Inc. 249.32 -20.46 (-7.58%)BTC-USD Bitcoin USD 70,854.73 -570.80 (-0.80%)XYZ Block, Inc. 59.79 -0.11 (-0.18%)ULTA Ulta Beauty, Inc. 535.72 -88.98 (-14.24%)RBRK Rubrik, Inc. 53.43 -0.59 (-1.09%)PortfolioSign in to access your portfolioSign inTop gainersNP Neptune Insurance Holdings Inc. 21.87 +3.68 (+20.23%)PED PEDEVCO Corp. 18.18 +2.68 (+17.29%)VEON VEON Ltd. 50.60 +6.29 (+14.20%)KLAR Klarna Group plc 15.91 +1.29 (+8.82%)KYIV Kyivstar Group Ltd. 11.07 +0.87 (+8.53%)Top losersULTA Ulta Beauty, Inc. 535.72 -88.98 (-14.24%)MEOH Methanex Corporation 51.75 -6.31 (-10.87%)CACC Credit Acceptance Corporation 447.79 -46.21 (-9.35%)AAOI Applied Optoelectronics, Inc. 96.81 -9.38 (-8.83%)EQX Equinox Gold Corp. 14.57 -1.35 (-8.48%)Most activeNVDA NVIDIA Corporation 180.25 -2.91 (-1.59%)AAL American Airlines Group Inc. 10.30 -0.24 (-2.28%)NOK Nokia Oyj 8.24 +0.10 (+1.23%)BMNR Bitmine Immersion Technologies, Inc. 20.54 -0.01 (-0.05%)ONDS Ondas Inc. 10.16 -0.17 (-1.65%)Top economic eventsEarnings eventsMy earnings eventsEarnings events