Next Q3 Saved By Strong Online Performance

Next has reported on performance for the third quarter trading, for the period ended Saturday 26 October.

Summary

- Q3 full-price sales up +2.0% on last year, slightly ahead of guidance given in September
- Year to date, full-price sales up +3.5% on last year
- Full-year, full-price sales guidance maintained at +3.6%
- Full-year profit guidance maintained at £725m (+0.3% on last year)

Sales For The Third Quarter And Year To Date

Retail: -6.3% (Q3); -4.8% (year to 26th Oct)
Online: +9.7% (Q3); +11.1% (year to 26th Oct)
Product full-price sales: +1.6% (Q3) +3.1% (year to 26th Oct)
Finance interest income: +7.0% (Q3); +8.9% (year to 26th Oct)
Total full-price sales including interest income: +2.0% (Q3); +3.5% (year to 26th Oct)

Next said that strong sales in July pulled forward sales from August, and sales in September were adversely affected by unusually warm weather.  When temperatures fell in October, sales improved significantly, recouping some of the lost sales in September.  Sales growth for the rest of the year is not expected to be as strong as October.

The retailer is maintaining guidance for full-year results, advising that for the full year to estimate to January 2020:

- Total full-price sales versus 2018/19: +3.6%
- Group profit before tax: £725m
- Group profit before tax versus 2018/19: +0.3%
- Earnings Per Share growth versus 2018/19: +5.2%

Christmas Trading Statement
Next will issue an update on sales to Saturday 28 December 2019 on Friday 3 January 2020.

Source : Insight DIY Team

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