Next raises profit outlook after positive Christmas trading

Next Plc has announced that full price sales in the Christmas trading period were 1.1 percent, 9 million pounds (11.8 million dollars) ahead of its internal forecast, driven by a much colder November than last year and improved stock availability in both retail stores and online.

For the full year, the company expects full price sales growth of 3.9 percent, 0.3 percent ahead of the guidance given in October. Next has also increased our profit guidance for the full year by 2 million pounds to reflect these additional sales and central guidance for EPS is 458.7p, an increase of 5.4 percent on the previous year.

The company’s guidance for full price sales growth for the year ahead is 3 percent. Next said in a statement that at this level of sales growth, it anticipates group profit would be 734 million pounds, up 1 percent on the current financial year, based on a 52-week sales period. However, since next year will be a 53-week year to January 30, 2021, the company expects the additional week of sales to generate approximately 13 million pounds of profit.

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