NEXT online business outperforms
Next has reported that its Q4 sales were on target after it’s online business made up for a poor showing at the brick and mortar stores.
Sales between 1 August and 24 December rose 3.1% compared with a year earlier, ignoring the effect of rising VAT.
Next Directory sales grew 16.9% with “click and collect” the most popular option.
Meanwhile its High Street business, which accounts for 66% of total, recorded a 2.7% fall, sending Next’s share price 3.5% lower by mid-afternoon in London.
Next share prices rose 39% over the past 12 months, easily outperforming a -5% average of the FTSE 100 index.
Profit margins
Next full-year profits forecast still at £565m, narrowing the range to +/-£7m.
The total sales growth figure of 3.1% was in the middle of its previous guidance of 2.5% to 4%, despite the “slightly disappointing” numbers from its 500 stores.
Next expressed uncertainty in its statement as to why the High Street performance had been so weak, particularly considering that last year’s sales had been hurt by cold weather.
Analysts generally agree the fugures are good, especially in these times they are very lucky. Next said it was cautiously optimistic about its end of season sales – which began after the end of its latest reporting period – and expected results to be slightly ahead of budget.
The retailer said it expected sales this year to be helped by a probable freeze in the price of its products.
An ongoing trend, if you’re in bricks and motar retail and you haven’t got click & collect shopping, you’re probably losing out big time
