// Next profits reach £823m in the year to January 2022, 10% above pre-pandemic levels
// Despite the increase, Next lowered forecast for its new financial year
Next full-year profits rose 10% on pre-pandemic levels but the retailer lowered expectations for its new financial year after the closure of its Russian and Ukraine websites.
The fashion retailer’s pre-tax profit reach £823 million in the year ending January 2022, 10% up on pre-pandemic levels and more than double its 2020/21 earnings.
Operating profit hit £905.4 million and marked a 103.7% spike year-on-year and a 6% uplift on pre-pandemic levels.
READ MORE: First look: Next brings Gap back to UK high street as Oxford Street concession opens
Total sales hit record levels of £4.86 billion during the period, a jump of 34.1% year-on-year and 11.5% on a two-year basis.
Full-price sales grew 32.4% compared to last year and 12.8% on pre-pandemic levels.
After a year that “exceeded all our expectations”, Next said it downgraded its profit forecasts for 2022/23 as a result of the “unusually high level of geopolitical and economic uncertainty”.
The retailer has lowered sales guidance by £85 million and profit guidance by £10 million following the closure of its websites in Ukraine and Russia, and “moderating growth expectations” in other overseas markets.
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2 Comments. Leave new
Online sales in the year increased by 44.6% to £3.1bn against 2019/20, and up 31.1% versus last year. Retail sales dropped by 22.7% to £1.4bn on a two-year basis. Says it all. Next will have to start shrinking there store estate and abandoned this adventure of opening beauty halls. Guarantee Next start closing stores on the quiet as there consistently cannibalism there store estate to online. I feel sorry for the staff who are going to lose there jobs. I think if it wasn’t for next switching to turnover base rents next would be in trouble even with there online success.
If you read nexts presentation on its website your see they’ve closed 19 stores and I quote “ In the year ahead we expect retail space to reduce by around -2%, due to the closure of around 15 stores” I wonder if this will make headline news.