7th Nov 2007 07:01
Next PLC07 November 2007 Date: Embargoed until 07.00am, Wednesday 7 November 2007 Contacts: Simon Wolfson, Chief Executive David Keens, Group Finance Director NEXT PLC Tel: 0844 844 8888 Alistair Mackinnon-Musson Nicola Savage Hudson Sandler Tel: 020 7796 4133 Email: next@hspr.com Photographs available: http://www.next.co.uk/press/ NEXT PLC Interim Management Statement Wednesday 7 November 2007 Current Trading The combined sales of Next Retail and Next Directory for the fourteen weekperiod from 29 July to 3 November 2007 were up 0.4% compared to the same periodlast year. Next Retail sales in the period were level with last year. Mainline like forlike sales in the 301 stores that were unaffected by new openings were down-2.9%. Next Directory sales were up 1.2% in the period. Markdowns in the last fourteen weeks (the majority of which were taken in ourtwo day mid-season Sale) have been marginally less than in the same period lastyear. The table below sets out the above sales performance compared to the tradingstatement made in September at the time of our interim results: Sales Six weeks to Fourteen weeks to 8 September 3 NovemberTotal Next Brand Sales -2.9% +0.4%Total Next Retail Sales -2.9% 0.0%Next Retail Mainline LFL -4.8% -2.9%Next Directory Sales -2.9% +1.2% Outlook for the Autumn Winter Season The last eight weeks sales have shown a significant improvement on the first sixweeks. However, trading patterns remain extremely volatile with good sales inSeptember giving way to a disappointing October. Whilst we are happy that wehave made significant improvements to our product ranges, marketing and storeswe remain cautious about the consumer environment, with many customers nowexperiencing considerable year on year increases in their mortgage repayments. So whilst the outlook is uncertain, our forecast for Next Retail sales remainsin line with the guidance we gave at the half year and we expect like for likesales to fall within a range of -1.0% to -3.5%. We now expect Directory salesto be between 0% and +2% up on last year. Based on these sales ranges our current full year profit forecast for the groupremains in line with market expectations. Share Buybacks Since 11 September we have purchased a further 0.7% of our shares in issue atthe start of this financial year, at a cost of £34m. For the year to date wehave purchased 8.5% being 19.3m shares at a total cost of £402m. We remaincommitted to purchase a further 0.9m shares under contingent purchase contracts. Sales and Trading Updates in 2008 As a consequence of the new Interim Management Statement regulations, NEXT willmove to quarterly sales reporting, with a post Christmas statement in place of aQ4 statement. The table below sets out our intended sales statements for 2008: Period Announcement ContentChristmas Early January Sales for the period 29 July to 24 December 2007.Quarter 1 End April Sales and trading for the first quarter to 26 April.Quarter 2 End July Sales for the second quarter and first half to 26 July.Quarter 3 End October Sales and trading for the third quarter to 25 October. The Full Year Announcement in March and Interim Results in September willtherefore no longer contain a sales update for the short period between thefinancial period end and the date of the announcement. - END - This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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