5th Jan 2016 07:21
LONDON (Alliance News) - Next PLC on Tuesday reported a rise in sales in the year to January 2, although growth was below the bottom end of its prior guidance, and said it expects full-year profit to remain within its previously guided range.
The fashion and homeware retailer said total brand sales rose 3.7% in the year to January 2, with Next Retail up 2.1% and Next Directory up 6.1%. This was below its previously guided range of between 4% and 6% growth for total sales.
In the 60 days from October 26 to December 24, total brand sales grew 0.4%, as a 2% increase in Next Directory offset a 0.5% decline in Next Retail.
Next said its performance in the fourth quarter was "disappointing" due to unusually warm weather in November and December, while Next Directory was hit by poor stock availability from October onwards.
Nevertheless, Next said its good control of margins, costs and stock, and "healthy" clearance rates mean profit for the full year to end January will remain within the guidance issued in October of between GBP810 million and GBP845 million. The retailer estimates the figure to be GBP817 million, but said this may increase or decrease by GBP7 million depending on trade in January. GBP817 million would represent a 4.4% increase on the profit made the prior financial year.
Next added that total brand sales in financial 2017 will grow between 1% and 6%, with profit expected to grow in line with sales.
Next also said it will pay a further special dividend of 60 pence per share, on top of GBP2.30 already paid in special dividends.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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