Home Business News Next to reduce prices after profits beat forecasts

Next to reduce prices after profits beat forecasts

21st Mar 24 9:47 am

Next have said they are to reduce prices for their customers after a better than expected profits.

The fashion retailer reported in the year to January a 5% rise in their underlying pre-tax profits of £918 million.

It was forecast for £905 million, but in the January sales there was a better than expected stock clearance.

The group said: “Our product teams have adjusted the timing of their contract bookings to account for this delay.

“In addition, higher freight costs have been factored into our prices going forward, but we still anticipate that our prices will fall.”

Amanda James, told the PA news agency. “We’re mindful that there could be a weakening in the employment market, while mortgages are also coming to the end and need refinancing.

“With that in mind, it makes sense to plan for a budget that we can achieve.”

Russell Pointon, Director of Consumer at Edison Group said, “Next PLC’s FY23 results reveal a robust financial performance, characterised by a 5.9% increase in total group sales to £5.842 billion compared to the previous year.

“This growth trajectory is almost mirrored in the 5.0% uptick in group profit before tax, reaching £918 million, surpassing recently updated guidance by £3 million.

“This compares very favourably with guidance from this time last year for PBT of £795m. Next’s resilience is evident in its 4.0% growth in full-price sales, signalling a strong consumer demand for its offerings, and versus the budgeted decline of 1.5% at this stage last year.

“The company’s ability to outpace expectations is particularly noteworthy, underscoring its adept management of operations and market dynamics.

“Looking forward, Next’s guidance for the upcoming year underscores its commitment to sustained growth.

“With projected underlying full-price sales growth of 2.5% and total group sales anticipated to rise by 6.0%, the company remains optimistic on its prospects.

“Additionally, the forecasted post-tax earnings per share (EPS) of 606.3p, reflecting a 4.8% increase, further solidifies Next’s position as a key player in the retail arena.”

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