Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We use cookies to personalise your experience; learn more in our Privacy and Cookie Policy. You can opt out of some cookies by adjusting your browser settings; see the cookie policy for details. By using this site, you agree to our use of cookies.

Next ups profit guidance as it prepares for no-deal Brexit

Next has increased its profit guidance for the full year after sales in August and September exceeded expectations.

The retailer now expects full-year profit before tax to be up by £10m to £727m, despite what it described as “volatile” trading conditions subject to powerful headwinds. 

Pre-tax profits at Next rose by 0.5% to £311.1m in the six months to the end of July and Next brand full-price sales were up 4.5%. Total sales, including markdowns, were up 3.9% on the same period last year.

In store sales for the six months fell 6.9% year on year, while online sales were up 16.8% compared to the same period in 2017.

Sales at Next’s Label business were up 24.2%, driven by increasing sales with existing partner brands and introducing new brands.

The business said in the year to January 2019, it anticipates partially offsetting cost increases of £55m with cost savings of £43m.

The retailer also outlined its preparations for a no-deal Brexit, pointing to tariff and duty increases and a potential reduction in the value of sterling as two key challenges. Next also called on the government to clarify its intentions on tariff rates in the event of a no-deal Brexit.

It added that while there are “significant challenges” involved in preparing for a no-deal outcome it does not believe that the “direct risks of a no-deal Brexit pose a material threat” to the ongoing operations and profitability of Next in the UK or the EU.

Traditionally known for only having two end of season Sales per year, Next launched a mid-season Sale last weekend and is discounting by up to 50% off many items.







Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.