Next posts sales and profit growth

Full price sales at Next plc were up 6.9 percent versus 2021/22 and up 20.5 percent versus 2019/20.

The company said in a release that total trading sales including markdown sales were up 8.4 percent versus 2021/22 and up 20.6 percent versus 2019/20. Next pre-tax profit was 870 million pounds, up 5.7 percent versus 2021/22 and up 16.3 percent versus 2019/20.

The company is maintaining the guidance previously set out in January; with full price sales expected to decline by 1.5 percent and pre-tax profit to be 795 million pounds.

Next retail posts marginal sales decline versus 2019/20

Next retail full price sales were down 0.4 percent versus 2019/20, while total sales including markdown sales were up 1 percent. Operang profit was 204 million pounds, up 16 percent versus 2019/20 and net operating margins improved from 9.5 percent to 11 percent.

The company is forecasting retail full price sales to be down 4 percent versus 2022/23. Based on this sales guidance, retail’s operating margin is forecast to be around 9 percent for the full year, down 2 percent.

Next online full price sales were up 42 percent versus 2019/20 and total sales including markdown sales were up 40 percent. Operating profit was 457 million pounds, up 11 percent versus 2019/20.

The company closed 17 mainline stores this year and one clearance store and opened seven new clearance stores with an average lease term.

Next expects weaker first half trading performance

The company added that full price sales performance in the last eight weeks and full price sales performance guidance for the first quarter is negative 2 percent against the previous year.

For FY23, full year full price sales are expected to reach 4.5 billion pounds, down 1.5 percent, profit after tax is expected to be 795 million pounds, down 8.7 percent, pre-tax EPS of 656.1p, down 6.4 percent and post tax EPS of 501.9p, down 12.5 percent.

The company expects performance in the first half of the year to be weaker than in the second half because in the first half last year, unusually warm summer weather coincides with the release of pent-up demand for summer events after the pandemic.