John Lewis of Hungerford turnover falls, though same-store sales improve

John Lewis of Hungerford posted its interim results for the six months to 28 February on Friday, reporting total turnover of £3.57m, down from £3.61m in the same period a year ago.

The AIM-traded company counted £45k in turnover from closed stores during the period, down from £202k a year ago, making for a 3% improvement in comparable stores turnover to £3.52m from £3.41m.

Its cost of sales was £1.79m, down marginally from $1.8m, although its gross margin softened by 2% to £1.78m from £1.82m.

Other overheads reduced by 14% to £1.89m, and non-recurring costs were 59% smaller at £15k, making for a 70% reduced operating loss of £123k, compared to £408k a year ago.

“Turnover for the first half year was in line with the previous year, but from an estate comprising two less showrooms,” said chief executive Kiran Noonan.

“Adjusting for the closures of Harrogate and Tunbridge Wells during the previous year, the comparable like for like sales show a growth of 3%.

“We are pleased with this sales performance which comes against a mixed economic picture, with the strong confidence levels immediately following the Brexit vote, replaced by weakening consumer spend in the early months of 2017.”

The company said the improved sales performance, combined with the cost reduction activities contributed to a substantially reduced loss in what is traditionally the firm’s weaker trading period.

“The loss before tax for the first six months of £144k includes a non-recurring charge of £15k, including an under accrual of showroom closure costs in the last financial year,” Noonan explained.