Home / Knowledge / News / Apparel/Garments / Next Plc profit forecast remains within guidance
Next Plc profit forecast remains within guidance
05
Jan '11
Next plc, UK based retailer announced trading statement.

Outlook for Profits and Earnings Per Share
Despite very challenging trading conditions in the run up to Christmas, Next plc confirms that its profit forecast for the year ending January 2011 remains within the guidance issued in September and November.

We now estimate that full year profit before tax will be in the range of £540m to £555m and is in line with current market expectations. This would represent an increase of between 7% and 10% on last year. Earnings per share have been enhanced through cash generation and share buybacks. Assuming profits fall within the above range, EPS will be between 15% and 18% ahead of last year.

Sales Performance 1 August to 24 December
Total Next Brand sales (excluding VAT) were up 0.2%, just within our +0% to +3% guidance.

Retail sales were down 3.1% and Directory finished the season up 8.7%.

Retail sales were significantly affected by extreme weather conditions and increased competitor discounting on the high street before Christmas. We estimate that we lost £22m of full price sales as a result of the snow (representing 2.2% of the season's total sales) leaving like for like sales down 6.1%. Retail sales were also somewhat affected by limited stock availability on best-selling lines in the run up to Christmas.

New Retail space has continued to perform well and we have been particularly pleased with our 9 new Home stand alone stores.

Directory initially benefited from the adverse weather conditions with people ordering from home rather than braving the cold. However, in the immediate run up to Christmas the fear of failed deliveries reduced demand. Overall we believe the effect of weather on Directory was neutral.

The End of Season Sale started well and clearance rates are in line with our expectations.

Outlook for 2011
The outlook for 2011 is uncertain. The impact of Government cuts on consumer spending is still unclear and we have yet to fully understand the impact of rising retail selling prices on overall demand. We reconfirm that our own prices will be increasing by circa 8% as a result of higher input costs and the rise in VAT. Our best guess is that price rises will moderately suppress like for like sales, though we believe this will be offset by the addition of profitable new Retail space and continued growth of Directory's online business.

We will give more detailed guidance for sales and profits for the year ahead with our full year results, which we anticipate announcing on Thursday 24 March.

Next Plc

Must ReadView All

Apparel/Garments | On 29th Mar 2017

Indonesian garment exports to remain stable in 2017: API

Garment exports from Indonesia are likely to remain stable this year...

Courtesy: Carrington

Apparel/Garments | On 29th Mar 2017

Carrington Workwear signs JV with TMG Textiles

Carrington Workwear, one of the largest producers of workwear fabrics ...

Apparel/Garments | On 29th Mar 2017

Myanmar CMP garment exports to touch $2.2bn in 2017

Cutting, making and packaging (CMP) garment exports from Myanmar are...

Interviews View All

Sanjay Desai & Ashish Mulani
True Colors

Digital textile printing will be the technology of the future

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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
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