- Full price sales were up 4.8% in the 9 weeks to 30 December, much better than expectations.
- Next have increased their profit before tax guidance for the year by £20m to £860m.
- Next is cautious about the year ahead (to
"This is another impressive performance from the bellwether of the
The group benefited from a cold snap in December, which has boosted demand for winter clothing, as well as the absence of pandemic restrictions, aiding store performance. Nevertheless, this shouldn't take away from Next's stellar execution. Many other retailers have struggled in the current environment, but Next's proposition is clearly resonating with the
Looking ahead to the next year, the environment is set to get tougher still. Next's sales are expected to fall modestly, with profits down close to 10%, as cost pressures take their toll. That said, this outlook is not as bad as it could have been at the time of the disastrous mini-budget, when sterling was in the doldrums.
Next expects cost inflation to peak at around 8% in the spring summer season before coming down. That looks a lot more manageable than it did a few months ago, largely reflecting the recovery of sterling (80% of Next's purchases are in US dollars).
Next, and the rest of
*
Ends
For further information contact:
The aim of
.
(C) 2023 M2 COMMUNICATIONS, source