Wednesday, February 20, 2019

Next‘s Q3 sales meet expectations


Retail giant Next has recorded third-quarter sales in line with previous guidance and left full-year forecasts relatively unchanged.

The British chain, which trades from over 500 stores in the UK in Britain and Ireland, said on Wednesday that sales of the retail division rose 5.9% in the 13 weeks to 28 October while the directory side of the business increased by 6.2%.

Turnover is up 4.4% year to date so group profit expectations have increased between £810m and £845m.

Last year Next made high street history when it eclipsed Marks & Spencer‘s with its annual profits and took the crown as the UK‘s biggest fashion retailer. The Leicester-headquartered company said it had been “braver in buying into new trends” but it has also been nimble in capitalising on the rise of online demand as well as the expansion of high street floor space.

Several retailers have seen quarterly sales hurt by unpredictable British weather in the last 12 months, so in response to changing shopping patterns Next introduced a four season buying cycle as opposed to the traditional two.  This meant an increase the range of cold weather products in the first few months of the year, and warm weather goods in the key summer months.

It‘s this kind of forward thinking, omni-channel approach that sets the 33-year old business apart.