Next sales slow as consumer slowdown bites
Internal forecasts for full year profits in line with market consensus.
Next said that it expects total Next Retail sales for the first half to be down by around -3.5 per cent with like for like sales at the bottom end of forecast range at around -7 per cent. Next Retail sales were 5.0 percent lower in the first quarter period from Jan 27 to April 26 compared with a year ago. Like for like sales in the 340 stores that were unaffected by new openings were down 8.9 per cent. Next Directory sales were down 1.0 per cent on last year.
“We remain cautious about the outlook. Financial pressures on our customers resulting from cost increases in food, fuel, mortgage repayments and taxation look set to continue. However, we continue to believe that sales in the second quarter will improve significantly as a consequence of last year’s unusual weather patterns and we have budgeted on this basis.” Next said in a statement.
