Next PLC Trading Statement (1350I)
03 August 2023 - 4:00PM
UK Regulatory
TIDMNXT
RNS Number : 1350I
Next PLC
03 August 2023
Second Quarter Trading Statement - 3 August 2023
HEADLINES
-- Full price sales (1) in the second quarter (May-July) were
up +6.9% on last year.
-- On 19 June we issued an unscheduled Trading Statement after
a period of much better than expected full price sales,
mainly driven by exceptionally warm weather. Since then,
full price sales have been up +3.7% on last year. This was
ahead of our guidance of +0.5%.
-- The end-of-season Sale has gone well and clearance rates
were ahead of our expectations.
-- We are increasing our full year guidance for Group profit
before tax by GBP10m to GBP845m.
1. Full price sales are VAT exclusive sales (including the full
value of commission based sales), less items sold in Sale events
and Clearance. They also exclude Joules sales and sales through
Total Platform. Full price sales are not statutory sales.
FULL PRICE SALES PERFORMANCE
Full price sales performance versus last year, by business
division, is set out below for the second quarter and the first
half. For completeness, performance reported in the unscheduled
Trading Statement is shown in grey along with the last six
weeks.
Q2: 7 Q2: 6 Q2: 13 H1: 26
weeks weeks weeks weeks
Full price sales by division to 17 to 29 to 29 to 29
versus last year June July July July
============================= ====== ====== ====== ======
Online +13.7% +5.0% +10.0% +4.1%
Retail +3.1% +1.0% +2.2% +0.9%
====== ====== ====== ======
Total Product full price
sales +9.5% +3.4% +6.9% +2.9%
Finance interest income +6.5% +7.4% +6.9% +7.1%
====== ====== ====== ======
Total full price sales inc.
interest income +9.3% +3.7% +6.9% +3.2%
END-OF-SEASON SALE
Stock levels have been well controlled and we went into the
end-of-season Sale with surplus stock down -22% versus last year.
Clearance rates, to date, are ahead of last year and ahead of our
internal forecasts, which has added around GBP4m to Group profit
before tax.
GUIDANCE FOR FULL PRICE SALES, PROFIT AND EARNINGS PER SHARE
Full price sales guidance
We are maintaining our forecast for full price sales to be up
+0.5% versus last year in the second half, which implies full price
sales for the full year will be up +1.8%.
Revised profit and EPS full year guidance
The combination of:
-- GBP16m of additional full price sales in the last six weeks
-- and
improved clearance rates in our end-of-season summer Sale
mean that we expect to generate GBP10m more profit than we
anticipated in our last Trading Statement. Accordingly, we are
raising our guidance to GBP845m. The table below sets out our new
guidance for the full year, along with the previous guidance.
Previous
Latest Versus guidance Versus
Full year guidance guidance last year (2) last year
======================= ========= ========== ========= ==========
Full price sales GBP4.68bn +1.8% GBP4.67bn +1.4%
NEXT Profit before tax GBP845m - 2.9% GBP835m - 4.1%
Pre-tax EPS 700.1p - 0.2% 692.0p - 1.3%
Post-tax EPS 535.3p - 6.6% 529.2p - 7.7%
========= ========== ========= ==========
2. Please note that EPS guidance was not provided in June's
Unscheduled Trading Statement. The EPS forecast at that time is
shown here for completeness.
INTERIM RESULTS
We are scheduled to announce our results for the first half of
the year on Thursday 21 September 2023.
Forward Looking Statements
Certain statements in this Trading Update are forward looking
statements. These statements may contain the words "anticipate",
"believe", "intend", "aim", "expects", "will", or words of similar
meaning. By their nature, forward looking statements involve risks,
uncertainties or assumptions that could cause actual results or
events to differ materially from those expressed or implied by
those statements. As such, undue reliance should not be placed on
forward looking statements. Except as required by applicable law or
regulation, NEXT plc disclaims any obligation or undertaking to
update these statements to reflect events occurring after the date
these statements were published.
Date: Embargoed until 07:00 hrs, Thursday 3 August 2023
Contacts: Amanda James, Group Finance Director Tel: 0333 777
(analyst calls) 8888
Alistair Mackinnon-Musson, Rowbell Tel: 020 7717
PR 5239
Photographs: https://www.nextplc.co.uk/media/image-gallery/campaign-images
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END
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