Next delivers solid performance
Growth has been achieved as a result of the addition of profitable new space, healthy growth in Home Shopping through the NEXT Directory and prudent cost control
Sales in NEXT Retail were 7.0 per cent ahead of last year. Like-for-like sales in stores that traded continuously and were not affected by the opening of new space were -2.9 per cent down on last year. New stores contributed 13 per cent to sales of which the company believes 3.1 per cent reduced the sales of existing outlets.
Profit in Retail increased by 3.6 per cent compared with the 7 per cent increase in sales. Net operating margin was down from 12.1 per cent to 11.7 per cent.
Directory sales were 12.1 per cent ahead of last year. The increase in underlying demand (goods requested by customers) was 9.6 per cent and lower returns rates resulted in a higher
sales increase.Directory profit was up 18.1 per cent on last year.
Simon Wolfson, Chief Executive said “Our core strategy for growth remains unchanged – we continue to focus on improving our product ranges, opening profitable new space for NEXT Retail, expanding our NEXT Directory customer base and using surplus cash to buy back
shares. Inevitably the economic climate has placed a greater emphasis on cost control and here we have made some progress.”
