Some points and questions to consider while reading this article:
- The author makes the claim that the reversal of fortunes, is up by 4% from last year, is due to helped by cooler weather and fewer people going on holiday abroad.
- The author does make the point about how the revenues have increased by 4%, over the last seven weeks, and she also cites sales, pre-tax profitability(£300m), and etc. She does not provide context specifically how those things compare to last year. Is that comparison for a similar seven-week period from 2019?
- What things did Next implement, during the COVID-19 pandemic that specifically lead to the increase in revenue for the 7 week period? Did they lower prices? Did the seek to provide sales incentives via an online shopping distribution model?
- If they are seeking to close some of their retail outlets, and their end of year revenue projections are down, does this 4% increase really represent a growth trend—as we enter cooler weather and the holiday season?
By CAMILLA CANOCCHI FOR THISISMONEY.CO.UK
PUBLISHED: 04:13 EDT, 17 September 2020 | UPDATED: 06:23 EDT, 17 September 2020
Clothing and homeware chain Next has begun to reverse its fortunes after the Covid slump as it upgraded its full-year forecasts for a second time after recent strong trading.
The FTSE 100 retail bellwether said full price sales in the last seven weeks were up 4 per cent compared to last year, helped by cool weather and fewer people going on holiday abroad.
It now expects profit before tax to come in at £300million, up from its previous guidance of £195million given at the end of July. That, however, is less than half what it was expecting before the pandemic struck.
Michael Hewson, chief market analyst at CMC Markets UK, says: ‘When you consider that in January, Next was expecting to see pre-tax profits of £734million for 2020, this is a remarkable turn in fortunes from what the business was facing as recently as a couple of months ago.’
But Simon Wolfson, Next’s chief executive, said the sales performance through the pandemic had been ‘more resilient than we expected’.
‘The scale of our online business (in the UK and overseas), the breadth of our product offer, and the fact that much of our store portfolio is located out of town, have served to mitigate the worst effects of the pandemic on trade,’ he added.
Investors seem to have received well the update, with shares rising 1.7 per cent to £62.77 in morning trading on Thursday. But they remain 12 per cent down so far this year.
Sales of home, children swear, sportswear, lounge and underwear performed better than formalwear and holiday categories.
Emily Salter, retail analyst at GlobalData, said: ‘This ability to switch product focus to different categories is a luxury not afforded to many retailers, and will benefit Next as the new “rule of six” will drastically reduce the demand for occasion wear for the festive period, so Next can switch its product focus to more casual, cozy styles instead.’
Despite the upgraded forecasts, the group still expects sales to fall 12 per cent this year under a better-case scenario, or between 17 per cent and 29 per cent in a worst-case scenario.
In the first half, sales fell 33 per cent, hammered by store closures during lockdown and the group fell made pre-tax losses of £16.5million for the six months to the end of July – compared to profits of £327.4million a year earlier.
On an underlying basis, it saw profits crash 97 per cent to £9million, though it had initially expected to be loss-making.
Next, which has around 500 stores across the country, warned it still expects to close 13 shops this year, down from 14 predicted in March. Next, which has around 500 stores across the country, warned it still expects to close 13 shops this year, down from 14 predicted in March
Its update follows that of Zara’s owner Inditex yesterday, which said a surge in online trade helped it to record a healthy profit during the summer.
Next said it has not seen a deterioration in bad debt rates or any extension in the length of time customers choose to pay down their accounts.
Russ Mould, investment director at AJ Bell, says that despite the crisis, Next is still ‘managing to keep its head above water’.
‘Interestingly it has seen no change in bad debt trends, which one might have expected to shoot up amid growing unemployment,’ he said.
‘Next’s management has always taken a cautious view and is not being complacent, which explains why it is making provisions now for an increase in bad debts just in case.
‘That summarises Next to a tee. Its ability to keep making money through the crisis should be cause for celebration, but Next would never party too hard.’
Если нет возможности проголосовать, то гугл наложит меры на сайт – рано или поздно
AddisonNEFontana
LpNzjlicJVYIWK
sPaIxOfyKoXwHUlL
EleanorMDIrving
HudsonKSMobile
AdamWAPhiladelphia
If you want to use the photo it would also be good to check with the artist beforehand in case it is subject to copyright. Best wishes. Aaren Reggis Sela
If you want to use the photo it would also be good to check with the artist beforehand in case it is subject to copyright. Best wishes. Aaren Reggis Sela
Assertively iterate resource maximizing products after leading-edge intellectual capital. Jannelle Taddeusz Ganley
This is the most fantastic thing I have ever seen. Madel Augie Cutler
Thanks for sharing the memory and your insight. Be safe out there. Godspeed. Fayre Wallie Briant
Major thanks for the blog post. Really thank you! Really Cool. Em Wesley Ancelin
Hello, constantly i used to check blog posts here in the early hours in the morning, for the reason that i enjoy to find out more and more. Carlota Skippy Tatia
If you want to use the photo it would also be good to check with the artist beforehand in case it is subject to copyright. Best wishes. Aaren Reggis Sela
Pretty! This was an incredibly wonderful article. Thank you for supplying this info. Elsy Tristam Rider
HO cars work somewhat differently, but thenevertheless thehowever the premise is the sameis similaris the similaris identicalis the identical. Kym Rayner Solly
There is definately a great deal to find out about this subject. I really like all the points you made. Nicole Farrell Frederico
I will immediately grab your rss feed as I can not find your e-mail subscription link or newsletter service. Marian Stavros Hizar
Im obliged for the article. Really thank you! Much obliged. Jobie Enrique Mirelle
Most valuable post because garlic is essential for all vegetable food . Fara Thor Lynch
VZPIsuFkMH
Pretty! This was an extremely wonderful post. Thanks for supplying these details. Guinevere Morse Birkner
Looks like it has been a while since a post, but your since of sensuality is still great. Adora Zacharie Pierpont
Excellent article. Keep writing such kind of information on your blog. Evvy Donnell Starlin
There is definately a lot to know about this topic. I like all of the points you made. Nell Lauren Hux
My relatives all the time say that I am killing my time here at net, but I know I am getting knowledge all the time by reading thes pleasant content. Fannie Tirrell Forward
Good article! We are linking to this particularly great content on our website. Keep up the good writing. Joanne Rodolph Landmeier
Oh my goodness! Awesome article dude! Thank you so much, However I am experiencing problems with your RSS. Karin Delmer Wanda
Everything is very open with a really clear clarification of the challenges. Winni Chane Tamsky
Enjoyed every bit of your article. Much thanks again. Much obliged. Stormy Granville Fulks
We stumbled over here by a different website and thought I might as well check things out. Laetitia Hamnet Venus
Hey, thanks for the article post. Really looking forward to read more. Awesome. Merl Jeno Bullis
Awesome! Its genuinely amazing paragraph, I have got much clear idea on the topic of from this post. Thekla Jessey Braca
You made some nice points there. I looked on the internet for the issue and found most persons will go along with with your site. Louella Herrick Redmer
LrSYIkOZDNliXhc
Paragraph writing is also a fun, if you be acquainted with then you can write otherwise it is complex to write. Ianthe Skyler Idonna
Great post. I will be facing many of these issues as well.. Jenilee Ernst Tsui
I was very pleased to find this website on bing, just what I was searching for : D as well saved to my bookmarks . Vonnie Wilek Euridice
Currently it appears like Expression Engine is the preferred blogging platform available right now. Atalanta Barbabas Standford
Merely wanna admit that this is handy , Thanks for taking your time to write this. Ofelia Henri Gigi
One of our visitors recently advised the following website. Katine Roger Wakeen
Cudos to you for caring about the usefulness of your content, and therefore your readers. Corliss Roddie Riti
I believe you have noted some very interesting details , thanks for the post. Theresina Kelvin Zelig
Good post. I am dealing with a few of these issues as well.. Valencia Dickie Ashelman
GFoIBzjwgNKbc
Great looking web site. Think you did a bunch of your very own coding. Elizabet Monti Barayon
Some genuinely nice stuff on this website , I enjoy it. Laure Alexandr Peirce
I have read so many articles about the blogger lovers however this piece of writing is really a fastidious article, keep it up. Jori Jarib Floeter
You completed certain good points there. I did a search on the theme and found most people will have the same opinion with your blog. Antonia Murvyn Ernesto
If you want to take a good deal from this post then you have to apply such strategies to your won blog. Corri Archie Bravin
I am actually thankful to the owner of this site who has shared this great paragraph at here. Christy Artie Etoile
Fastidious answer back in return of this question with genuine arguments and describing the whole thing about that. Paige Cece Silberman
I am in fact thankful to the owner of this web page who has shared this great piece of writing at at this time. Juliann Alphonso Alba
I really like it when folks come together and share opinions. Great site, stick with it. Cynde Basilius Godber
Wonderful article! We will be linking to this particularly great article on our site. Keep up the good writing. Cassaundra Jard Eadmund
I believe you have noted some very interesting details, regards for the post. Lenee Tracie Jemmy
Simply wanna comment that you have a very nice internet site, I like the layout it really stands out. Katha Cullie Bozuwa
Thanks for the blog post. Really looking forward to read more. Really Cool. Krystalle Micah Ardme
I like reading an article that can make men and women think. Cathrin Everard Adamik
Sweet site, super design, really clean and use genial. Hyacinthia Rodolph Blanc
Here are several of the sites we suggest for our visitors. Devora Kory Zoilla
Valuable content plus a easy to read layout. Your website earns the numerous supportive comments it has been accumulating. Adelheid Ethan Kipp
I regard something really interesting about your website so I saved to fav. Alexa Brennen Turnheim