3rd Jan 2008 07:00
Next PLC03 January 2008 Date: Embargoed until 07.00am, Thursday 3 January 2008 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: [email protected] Photographs available: http://www.next.co.uk/press/ NEXT PLC Trading Statement CURRENT TRADE The combined sales of Next Retail and Next Directory for the period from 30 Julyto 24 December 2007 were up 0.3% compared to the same period last year. Next Retail sales were down 0.3% in the period. Mainline like for like sales inthe 309 stores that were unaffected by new openings were down 3.2%. Next Directory sales were up 2.2% in the period. PROFIT AND EARNINGS PER SHARE FORECASTS Our like for like sales performance was in line with the guidance we gave inSeptember and is an improvement on our performance in Spring Summer. This wasdespite a worsening consumer environment and significant markdown activity onthe high street. Next maintained its policy of trading full price in the run upto Christmas and stocks were well controlled going into the end of season Sale.So far clearance in the Sale has been in line with our forecasts. We anticipate that full year profits for the group will be slightly ahead ofmarket expectations with profit before tax in the region of £492m - £502m. Thiswill mean that operating profit will be up between 4% and 6%. As a result ofshare buybacks and a lower tax rate earnings per share will be up between 14%and 17%. So whilst trading has been difficult the financial performance hasbeen good as a result of excellent cost control and careful management of ourbalance sheet. OUTLOOK FOR 2008 Our outlook for the year ahead remains extremely cautious, with consumerscontinuing to face increasing demands on their finances. Many will experienceyear on year increases in mortgage charges for much of the coming year as aresult of favourable fixed rate mortgage terms expiring. We will continue totake on profitable new space in the UK, expand overseas and grow our onlinebusiness through Next Directory. However we are not forecasting a return tolike for like growth in the UK in 2008 for Next Retail. NOTICE OF FULL YEAR RESULTS We intend to issue our preliminary results for the 52 weeks to 26 January 2008on Wednesday 19 March 2008. The first of our quarterly trading statements willbe in early May 2008. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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