The John Lewis Partnership reported a profit fall of over 50 percent for the half year to July, after being hit by higher costs and weakening demand.
Profit before tax fell 53.3 percent to £26.6 million, mainly due to a hefty £56.4 million charge for restructuring and redundancy costs.
Other areas of the group performed well, with operating profits at the John Lewis department store rising by 10 percent. Gross sales were up 2.3 percent across John Lewis and Waitrose, with revenue jumping 2.2 percent to £4.8 billion.
However, at Waitrose operating profits fell 18 percent after high costs ate into its margin.
artnership chairman Sir Charlie Mayfield said: “The first half of this year has seen inflationary pressures driven by exchange rates and political uncertainty.
“These have dampened customer demand, especially in categories connected to the housing market.
“The exchange rate-driven increase in cost prices has also put pressure on margin.”
The group has also been affected by Brexit uncertainty, including the rise of the pound and the subsequent high inflation. However, its balance sheet remains strong enough to absorb costs “for a while”, according to the statement.