Next Q3 Sales Ahead Of Expectations

Next has published a trading statement for the covering the thirteen weeks to 29th October.

HEADLINES

• In the thirteen weeks to 29 October full price sales(1) were up +0.4%(2) versus last year. This was slightly ahead of our expectations.
  
  
• We are maintaining our guidance for full year profit before tax at £840m, up +2.1% versus last year. Based on this profit guidance, Earnings Per Share of 554.5p would be up +4.5% versus last year. 

¹ Full price sales are total sales excluding VAT, less items sold in our Sale events, our Clearance operations and through Total Platform.  These are not statutory sales. 

² Full price sales excluding Russia and Ukraine were up +1.5%.

FULL PRICE SALES GROWTH 

Full price sales in the last five weeks have been up +1.4%, boosted by one particularly strong week at the end of September, when temperatures dropped and sales of heavier weight products improved.

Q3 FULL PRICE SALES PERFORMANCE BY BUSINESS CHANNEL

REST OF YEAR FORECAST

We are maintaining our previous guidance for full price sales for the rest of the year to be down -2% versus last year. 

GUIDANCE FOR FULL PRICE SALES, PROFIT & EPS

Our guidance for sales and profit remains unchanged and is set out in the table below.  The difference in the growth in Earnings Per Share and profit before tax is due to share buybacks completed since January 2022. 

CHRISTMAS TRADING STATEMENT

We intend to give an update on sales to Saturday 31 December on Thursday 5 January 2023. 

Note for Analysts Concerning EPS Comparison with September Guidance:

In our September guidance, the boost to EPS from share buybacks was largely offset by an expected decrease in the value of our deferred tax asset.  This was caused by the proposed reduction in the future Corporation Tax rate as announced in the September mini-budget. Now that decision has been reversed by the Government, the value of our deferred tax asset will not be reduced so we anticipate getting the full benefit of EPS enhancement from share buybacks in the year.

Source : Next PLC

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