Home world Next raises profit guidance on bumper full-price Xmas sales


Next raises profit guidance on bumper full-price Xmas sales

by ace
File photo dated 29/05/18 of a branch of Next. The store's sales surged in the past three months as the high street fashion brand was buoyed by warm weather over the Easter period and online sales.

Next raised its profit orientation for the full year as sales exceeded expectations during the crucial Christmas season.

The home fashion retailer said full-price sales in the fourth quarter to December 28 were 5.2 percent ahead of the same period last year.

This represented an increase of just over 1% in its forecasts and has made total price sales 3.9% higher for the year so far.

The company expects profits for the year to the end of January to be 2 million pounds better than previously directed, Next said, despite a slow start to the end of its sale with settlement rates "slightly below our expectations. "

The company said it now forecasts pre-tax profit of £ 727 million – a 0.6% increase over the previous year.

It is the first major retailer to report its progress at Christmas after another difficult year – especially for streets with footprint numbers during the Christmas season, consistently showing that visitor numbers have declined.

A number of chains, including Tesco, M&S and Debenhams, are expected to update the market next week.

M&S is among chains to report on progress next week

Of concern for those exposed to city centers is the sales mix reported by Next.

Its well-established online operations led growth on Christmas Eve, rising by more than 15%, while store sales fell by almost 4% between October 27 and December 28.

Next said it believes its sales were driven by a "much colder November than last year and better inventory availability" at retail and online stores.

Equities were up 0.7% when the FTSE 100 was opened, although there was no sign of a recovery for first-tier competitors.

Richard Lim, chief executive of industry analyst Retail Economics, said: "This has been an impressive end to the year as their excellent online businesses continue to differentiate them from the competition.

"The retailer is benefiting from years of investment in its digital proposal, continually evolving its business model to meet the high expectations of buyers."


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