TIDMNXT
RNS Number : 1334R
Next PLC
03 November 2021
Date: Embargoed until 07.00hrs, Wednesday 3 November 2021
Contacts: Amanda James, Group Finance Director
(analyst calls)
NEXT PLC Tel: 0333 777 8888
Alistair Mackinnon-Musson Email: next@rowbellpr.com
Rowbell PR Tel: 020 7717 5239
Photographs: https://www.nextplc.co.uk/media/image-gallery/campaign-images
NEXT PLC
Trading Statement - 3 November 2021
Unless otherwise stated, all sales comparisons in this Trading
Statement are given relative to two years ago (2019/20).
Comparisons with last year are distorted because for much of the
year, our stores were closed.
HEADLINES
-- Full price sales in the thirteen weeks to 30 October were
up +17.0% versus two years ago.
-- Full price sales in the last five weeks, since the update
given in our Half Year Results issued in September, were
up +14.0%. This is better than our forecast of +10%.
-- We are maintaining our Q4 full price sales guidance at
+10% and full year profit before tax at GBP800m.
FULL PRICE SALES PERFORMANCE BY BUSINESS
The table below sets out the performance in the quarter and for
the year to date for our Online, Retail and Finance businesses.
Online sales are broken down into (1) NEXT branded stock sold in
the UK, (2) LABEL third-party brands sold in the UK and (3) sales
Overseas. LABEL sales have been particularly strong in the third
quarter.
Full price sales (VAT exclusive) versus Q3 Year
2019/20 to 30 October to 30 October
========================================== ============== ==============
Online NEXT UK +21% +37%
Online LABEL UK +86% +73%
Online Overseas +41% +55%
============== ==============
Total Online +40.0% +49.5%
Retail (UK and Ireland) - 6.1% - 28.8%
============== ==============
Total Product full price sales +18.7% +12.8%
Finance interest income - 5.0% - 8.9%
============== ==============
Total full price sales including interest
income +17.0% +11.2%
Total full price sales including interest
income versus 2020/21 +12.7% +39.1%
For completeness, the last row of the table shows our sales
performance compared to last year (2020/21).
Sales Performance by Week
The chart below gives the week by week growth in full price
sales for the third quarter. As expected, sales growth has
moderated in the last five weeks as the effect of pent-up demand
begins to diminish.
2021 Full Price Sales Variance by Week Versus 2019 chart: Click
or paste the following link into your web browser to view the PDF
document. Refer to page 2 for the relevant chart.
http://www.rns-pdf.londonstockexchange.com/rns/1334R_1-2021-11-2.pdf
FULL PRICE SALES AND PROFIT GUIDANCE
Full Price Sales Guidance for the Fourth Quarter
We do not expect sales to continue at the level seen in Q3 and
are maintaining our guidance for full price sales to be up +10% in
the fourth quarter. We believe that growth in the fourth quarter
will be lower than Q3 for the following reasons:
-- The effects of pent-up demand are likely to continue
to diminish.
-- Stock availability has improved but remains challenging,
with delays in our international supply chain being compounded
by labour shortages in the UK transport and warehousing
networks. However, to date, stock limitations appear
to be offset by strong underlying demand.
-- Although consumer finances are in good shape, price increases
in essential goods (such as fuel) may moderate demand
for more discretionary purchases.
Full Price Sales Summary Table
The over-performance in the last five weeks has added +0.3% to
our full year guidance as set out below.
Full price sales 2021/22 versus 2019/20 (2 years) Year to date Q4 guidance Full year guidance
================================================== ============ =========== ==================
Actual/new guidance +11.2% +10.2% +11.0%
============ =========== ==================
Previous guidance +10.2% +10.7%
Profit Guidance, EPS and Net Debt
During the last five weeks we have beaten our full price sales
forecast by GBP14m which generated around GBP4m of profit. We
anticipate that this will be largely offset by: (1) further
investment in digital marketing and (2) increased use of inbound
air freight and other Online distribution costs. So, we are
maintaining our full year profit guidance of GBP800m.
Profit before tax, EPS and net debt Full year guidance Versus 2019/20
================================================ ================== ==============
Group profit before tax (1) GBP800m +6.9%
Earnings Per Share 516.9p +9.4%
Year end net debt (excluding lease liabilities) GBP610m - 45.2%
================== ==============
(1) Profit before tax is reported on an IFRS 16 basis.
CHRISTMAS TRADING STATEMENT
We intend to give an update on sales to Saturday 25 December on
Thursday 6 January 2022.
Forward Looking Statements
Certain statements in this Trading Update are forward looking
statements. These statements may contain the words "anticipate",
"believe", "intend", "aim", "expects", "will", or words of similar
meaning. By their nature, forward looking statements involve risks,
uncertainties or assumptions that could cause actual results or
events to differ materially from those expressed or implied by
those statements. As such, undue reliance should not be placed on
forward looking statements. Except as required by applicable law or
regulation, NEXT plc disclaims any obligation or undertaking to
update these statements to reflect events occurring after the date
these statements were published.
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END
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November 03, 2021 03:00 ET (07:00 GMT)
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