Next posts surge in full year profit
Next increased its pre-tax profit by 140% to £823 million in the year to January 2022 and by 10% on pre-pandemic levels two years ago.
The fashion and homewares retailer also grew its branded full price sales, which were up 32.4% in the period and up 12.8% on a two-year basis.
Next said lost in-store sales due to the Covid-19 lockdown in its first quarter were made up for through online sales, particularly in the homeware and children’s clothing categories.
Meanwhile, the retailer was able to scale up online operations in its second half to meet pent-up demand for adult clothing, despite the impact of stock shortages.
Lord Simon Wolfson, Next chief executive, said: “We have navigated our way through the pandemic and the structural changes affecting our sector, to deliver record sales and earnings per share. We acknowledge that we have been fortunate. We went into the pandemic with a well established online business and a diverse product offer. This allowed our online business to make up for much of the sales we lost in retail; and accommodate the dramatic shift in sales between different product categories experienced during lockdown.”
Looking ahead to the outcome of the current financial year, Next said the closure of its websites in Ukraine and Russia and the moderation of growth expectations in other overseas territories, means that it is reducing its central profit guidance by £10 million to £850 million. It has also have lowered its sales guidance for the year by £85 million.
Michael Roney, Next chairman, said: “We enter 2022 with confidence in the outlook for our business and its ability to continue its successful evolution. The effects of the pandemic are ongoing and we remain mindful of macroeconomic and geopolitical risks, but our continued investment over many years in our people and our systems has generated strong and resilient results in the past year and we believe that it will continue to do so.”
