Next profits fueled by online and catalogue business
By FashionUnited
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He also forecast that consumer confidence was unlikely to change ahead of the crucial trading period in the run-up to Christmas.
“I can’t see why Christmas should be very much different . . . from the environment we are in today,” he said. “I don’t think there is a special Christmas consumer environment, which suddenly magically changes. In terms of the pressure on people’s wallets, I can’t see a change between now and Christmas.”
Analysts estimated that Next’s sales from stores open at least a year fell by about 7 per cent, excluding VAT, in the three months to October 29. Lord Wolfson said like-for-like sales from Next’s stores were 2-2.5 percentage points weaker in the third quarter compared with the first half. But a 16.9 per cent increase in Next Directory sales offset a 3.3 per cent fall in Next retail sales year-on-year, in the third quarter. Total Next brand sales rose 3.3 per cent.
Next also maintained its profit forecast, narrowing its guidance on full-year pre-tax profit from between £545m and £590m to between £550m and £585m.
Lord Wolfson said he expected no further increases in Next’s clothes prices in the spring-summer season, and this trend was expected to continue in the second half of next year. However, this did not necessarily mean a fall in clothing prices.
Image: Next Directory