Next PLC has released a trading statement indicating better-than-anticipated full price sales during November and December. In the nine weeks to 30 December, full price sales were up +5.7% versus last year, exceeding previous guidance of +2.0%. The company has increased its full year profit before tax guidance by £20m to £905m, up +4.0% versus last year. The increase is attributed to the sales beat to date and an upgraded forecast for full price sales in January.
The company's initial guidance for the year ahead includes expectations for full price sales on continuous business to be up +2.5% and Group sales, including subsidiary companies, to be up by +6.0%. Additionally, guidance for Group profit before tax for the year ahead is set to be up +5.0%. The statement is divided into two sections: Part One focuses on the current year, and Part Two gives sales and profit guidance for the year ahead.
The full price sales performance for the nine weeks to 30 December and the second half to 30 December showed a strong performance in both Retail and Online, with Online performing particularly well due to service improvements versus last year. The end-of-season Sale was well controlled, with stock being 12% less than last year, and clearance rates expected to be in line with last year.
Revised guidance for the current year includes an increase in profit before tax by £20m, with £17m attributed to the sales beat to date and £3m from an upgraded forecast for full price sales in January. The company also expects strong cash generation, with an anticipated surplus cash generation of circa £100m more than the previous guidance given in September.
Looking ahead, the company will be excluding the amortisation of the brands it purchases from its headline profits. The guidance for 2024/25 includes expectations for sales and profit, with an increase in headline profit due to the exclusion of brand amortisation.