Next posts 41 percent decline in Q1 sales

Next Plc has witnessed a sharp decline in full-price sales over the first quarter due to the impact of ongoing coronavirus pandemic. The company said in a statement that retail sales declined 52 percent, while online sales were down 32 percent for the period to April 25, 2020. The company added that product full-price sales dropped 41 percent, while total full price sales saw a decline of 38 percent. Next said that in the three days before stores closed on March 23, retail sales were down 86 percent.

Since the fall off in sales to date has been faster and steeper than anticipated in the company’s March stress test and Next now expects lower sales for both the first and second half of the year. The company believes that the effects of the coronavirus will be felt for longer than we first anticipated and the economic consequences and continued social distancing will mean that both retail sales and online sales will be disrupted even after full lockdown measures have been lifted.

Although the company’s July and January End of Season sales are likely to fall outside lockdown, Next said, clearing surplus stock will prove challenging if social distancing restrictions are in force. The company is forecasting for clearance sales to decline by 11 percent on last year, on a balance of stock to clear which is expected to be between 15 percent and 45 percent up on last year. Next assumes the loss of 50 million pounds on clearance sales.

Picture:Next media centre