ENDERBY (dpa-AFX) - Next plc (NXT.L) reported Thursday that full price sales for the Christmas trading period, between October 28 and December 29, were up 1.5% on last year, and have been in line with its guidance.
The company noted that strong sales in the three weeks prior to Christmas along with a good half-term holiday week at the end of October made up for disappointing sales in November.
Product full price sales grew 1 percent with a 15.2 percent growth in online sales, partly offset by 9.2 percent drop in retail sales.
For the full year, the company expects full price sales growth of 3.2%, in line with the guidance given in September. Product full price sales would grow 2.6 percent with 14.9 percent growth in online sales, and 7 percent drop in retail sales.
Further, the central guidance for full year profit before tax is now 723 million pounds, 0.6% lower than previous guidance of 727 million pounds. The cut reflected that higher sales on seasonal products, such as personalised gifts and Beauty products, reduced margin by 1.5 million pounds. These areas make a healthy net margin but lower than clothing ranges. The remaining reduction came as a result of the increased operational costs associated with the higher Online sales.
Full year profit may increase or decrease by up to £5m depending on sales and costs in January. Central guidance for Earnings Per Share is now 435.2 pence, an increase of 4.4% on the previous year.
Further, next year, central guidance for full price sales growth is 1.7%, in line with the second half performance of the current financial year.
The company anticipates Group profit would be 715 million pounds, a decline of 1% on the profit forecast for the current financial year. Earnings Per Share would increase again in the year ahead, 3.6%.
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