TIDMNXT
RNS Number : 3726K
Next PLC
05 May 2022
Date: Embargoed until 07:00 hrs, Thursday 5 May 2022
Contacts: Amanda James, Group Finance Director Tel: 0333 777
(analyst calls) 8888
Alistair Mackinnon-Musson, Rowbell Tel: 020 7717
PR 5239
Photographs: https://www.nextplc.co.uk/media/image-gallery/campaign-images
NEXT PLC
Trading Statement - 5 May 2022
HEADLINES
-- In the thirteen weeks to 30 April full price sales(1) were up
+21.3% versus last year, in line with our guidance for this
period.
-- We are maintaining our guidance for full year profit before
tax at GBP850m, which would be up +3.3% versus last year. Guidance
for Earnings Per Share of 557.3p would be up +5.0% versus last
year.
(1) Full price sales are total sales excluding VAT, less items
sold in our mid-season and end-of-season Sales events, our
Clearance operations and sales through Total Platform. These are
not statutory sales.
FULL PRICE SALES PERFORMANCE BY BUSINESS CHANNEL
Full price sales versus last year are set out below. Last year,
most of our Retail stores were shut for the majority of the first
quarter, which is why Retail growth is so strong at +285%.
Conversely, last year Online sales were boosted by Retail closures,
which is why we planned Online sales to be down in the first
quarter against last year. Online sales against three years ago
remained strong and were up +47% versus 2019/20.
The right hand column shows the three year growth versus
2019/20, which is the most recent year not disrupted by COVID. The
three year growth of +19.5% is the equivalent of a compound annual
growth rate (CAGR) of +6.1%.
13 weeks to 30 13 weeks to
April 30 April
Full price sales (VAT exclusive) One year growth Three year growth
by division 2022/23 vs 2021/22 2022/23 vs 2019/20
================================= =================== ===================
Online NEXT UK - 24% +23%
Online LABEL UK +20% +106%
=================== ===================
Total Online UK - 11% +47%
Online Overseas(2) - 12% +47%
=================== ===================
Total Online - 11% +47%
Retail (UK and Ireland) +285% - 8%
=================== ===================
Total Product full price sales +22% +21%
Finance interest income +11% - 2%
=================== ===================
Total full price sales including
interest income +21.3% +19.5%
(2) In March, we closed our websites in Ukraine and Russia.
Excluding Ukraine and Russia, Overseas full price sales were down
-7% versus last year and up +60% versus three years ago.
GUIDANCE FOR FULL PRICE SALES, PROFIT AND EARNINGS PER SHARE
Our guidance for the full year is set out below. The guidance
for sales and profit before tax remains unchanged from that given
in our Year End Results in March.
Central
Guidance for 2022/23 Lower guidance Upper
================================== ======= ========= =======
Q1 full price sales versus
2021/22 (actual) +21.3% +21.3% +21.3%
Q2 - Q4 full price sales versus
2021/22 - 2.9% +0.8% +4.6%
======= ========= =======
Full year full price sales
versus 2021/22 +2.0% +5.0% +8.0%
Profit before tax GBP795m GBP850m GBP895m
Profit before tax versus 2021/22 - 3.4% +3.3% +8.7%
Earnings Per Share 521.3p 557.3p 586.8p
Earnings Per Share versus 2021/22 - 1.8% +5.0% +10.6%
======= ========= =======
For completeness, full price sales guidance against three years
ago is shown below. The table demonstrates that, on a three year
basis, our central guidance for sales growth for the rest of the
year is 1.5% lower than that experienced in the first quarter.
Guidance for 2022/23 versus Central
2019/20 Lower guidance Upper
================================ ====== ========= ======
Q1 full price sales versus
2019/20 (actual) +19.5% +19.5% +19.5%
Q2 - Q4 full price sales versus
2019/20 +13.6% +18.0% +22.4%
====== ========= ======
Full year full price sales
versus 2019/20 +15.0% +18.4% +21.7%
CASH FLOW, SHAREHOLDER DISTRIBUTIONS AND INVESTMENTS
In our Year End Results in March we forecast that, at our
central guidance, we would generate around GBP220m of surplus cash
(after interest, tax, capital expenditure, investments or
acquisitions and ordinary dividends), which we would either (1)
return to shareholders (via share buybacks or special dividends) or
(2) invest in equity stakes in potential Total Platform clients.
Since then, we have purchased GBP107.5m of shares and spent GBP20m
acquiring minority stakes in a number of businesses, the lion's
share of this investment being in JoJo Maman BéBé.
Share Buybacks
So far this year, we have purchased 1.6m shares at an average
share price of GBP65.52, totalling GBP107.5m. This has reduced the
number of shares in issue by 1.2% since the January 2022 year
end.
SECOND QUARTER TRADING STATEMENT
Our next sales update will cover the first 26 weeks of the year
to 30 July 2022 and is scheduled for Thursday 4 August 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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