Next raises sales and profit outlook
21 Jul 2021
Next has increased its full-price sales guidance for the rest of the year from 3 percent to 6 percent and central guidance for full-year profit before tax by 30 million pounds to 750 million pounds.
It comes after full-price sales in the eleven weeks to July 17, 2021 were up 18.6 percent versus two years ago.
Pent-up demand boost sales at Next
The company has attributed strong sales performance in the eleven weeks to pent-up demand for adult clothing, with many customers having made few summer purchases during the last 18 months; onset of extremely warm weather at the end of May and start of June; fewer holidays overseas increasing domestic spending in the UK; and an increase in consumer savings over the last year.
In the last eleven weeks, UK sales performance across all Next divisions improved with the opening of its stores. The performance of Label was up 64 percent and overseas online business witnessed an increase of 61 percent.
For the full year, surplus cash is forecast to be 240 million pounds. The board has decided to declare a special dividend of 110p per share to be paid on September 3, 2021 to shareholders registered at the close of business on August 13, 2021. The total value of this special dividend is approximately 140 million pounds.