Home / Knowledge / News / Apparel/Garments / Profit up in H1at NEXT Plc
Profit up in H1at NEXT Plc
03
Oct '11
Next Plc, UK based retailer, announced results for the year ended January 2011.

In a difficult year NEXT has proven resilient. Group revenue for the first half was 3.6% higher than last year and profit before tax was up 8.5% on a continuing basis. The business remains strongly cash generative and continued buyback of shares further enhanced growth in earnings per share, which were 18.6% ahead of last year. The interim dividend increases by 10% to 27.5p per share.

Financial highlights from our continuing business are as follows:
- Revenue up 3.6% to £1,565m
- Profit before tax up 8.5% to £228m
- Earnings per share up 18.6% to 98.3p
- Net debt of £640m and committed facilities of £918m
- Interim dividend up 10% to 27.5p per share

In a difficult year NEXT has proven resilient. In many ways 2011 has presented the perfect storm to the retail economy. On the buying front we experienced the first concerted rise in cost prices for nearly twenty years. This, combined with rising VAT, increased NEXT selling prices by around 7%. In a normal environment price rises would have supressed demand, but the consumer economy has been anything but normal.

Discretionary spending has been further squeezed by inflation in food and fuel, tight control of consumer credit, cuts in government expenditure and broadly stagnant wages. Against this background the NEXT Group has advanced sales, profits and earnings per share.

Our approach has been to focus on four primary objectives:
- The delivery of well stocked ranges, that reflect the latest fashion trends in a way that is accessible to our customers, whilst working hard to mitigate the effects of cost price inflation.
- Grow NEXT Retail sales through continuing to add profitable new space, with a particular focus on new large format Home stores.
- Grow NEXT Directory sales through profitably maximising the potential of our business online, both in the UK and overseas.
- Carefully manage our costs, capital expenditure and balance sheet, so that we can continue to return surplus cash through buying back shares and enhancing earning per share.

NEXT Brand sales (VAT exclusive) were towards the top end of our guidance at +3.2%, of which 2.8% came from new space. Profit before tax was up 8.5%. Our primary measure of success is sustainable long term growth in earnings per share. The business remains strongly cash generative and continued buyback of shares further enhanced growth in EPS, which were 18.6% ahead of last year.

Looking ahead to our full year results, we believe that VAT exclusive NEXT Brand sales for the year will be between 2.0% and 4.5% ahead of last year, which would result in NEXT Group profits being up between +0.4% and +8.7% and EPS up between +7.5% and +16.4%.

Early indications are that retail headwinds are likely to ease as we move into 2012. We have strong evidence that there will be little or no inflation in our own prices and it seems probable that other inflationary pressures will ease as commodity price rises begin to annualise in the first quarter of 2012.

Must ReadView All

Apparel/Garments | On 24th Mar 2017

UK online retail sales up 15% in February 2017

Online retail sales in UK have grown by 15 per cent year-on-year in...

Courtesy: Messe Frankfurt

Textiles | On 24th Mar 2017

Over 3341 exhibitors participate in Intertextile Shanghai

More than 3,341 exhibitors from 26 countries and regions participated ...

Apparel/Garments | On 24th Mar 2017

Tiruppur garment cluster hopeful of meeting export target

The Tirupur garment cluster is hopeful of meeting its target of...

Interviews View All

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search