Next has once again produced a robust set of quarterly trading figures that reflect the underlying economic backdrop but show Next’s strategy has navigated them through leaner times.
Next Total Product full price sales declined 1.2% in the 13 weeks to 29 April. Online sales were down 1.6% and retail slipped just 0.6%.
Next maintained their full-year profit before tax guidance at £795m, saying they thought it too early to moderate guidance:
“Although our first quarter performance moderately exceeded our sales guidance, we believe it is too early in the year to alter our overall sales expectations for either the half or full year.”
Next’s performance is at odds with economic conditions, and the retailer is undoubtedly outperforming many of their peers.
“This is another solid update from the bellwether of the UK High Street. Sales have fallen by less than expected, and although Next hasn’t increased its full year guidance, this seems to be borne more out of prudence than anything else,” said Wealth Club’s Charlie Huggins.
“The current retail environment is sorting the wheat from the chaff. On the one hand you have the likes of Superdry, Boohoo and Asos which are really struggling, not to mention countless other retailers that have gone bankrupt. At the other end of the spectrum are the likes of Next and Primark, which appear to be getting stronger.”