Next first half profits up 19.3%
Next has reported a 19.3% increase in first half profit with retail stores and online sales both delivering significant growth.
Pre-tax profit in the half year ending July 2014 rose to £324.2 million from £271.8 million in the same period last year. Meanwhile, total sales grew by 10.3% to £1.85 billion.
The fashion and homewares retailer said it had made good progress in improving and extending its ranges, opening profitable new space, improving its service and growing its online business both in the UK and overseas.
However, it also revealed that the performance was due in part to external factors such as an improving economy, low interest rates, and the increasing availability of credit.
Never Miss a Retail Update!Chief executive Lord Wolfson added: “We remain mindful that some of these factors are likely to be less favourable next year and this year’s fine summer weather could present tough comparatives next year, when interest rates are also expected to rise.”
Next Directory, the company’s online and catalogue business, grew its sales by 16.2% to £694.3 million while sales at high street stores increased by 7.5% to £1.08 billion.
The company reiterated the guidance it issued in July, when it raised its outlook for annual sales, forecasting growth of 7% to 10%. It also provided quarterly guidance for the second half, predicting that the third quarter will grow by 10% and the fourth by 4%.
Lord Wolfson said: “This may look unambitious for the fourth quarter but the number needs to be taken in the context of the very strong sales performance in the final quarter last year.”
