RNS Number : 9403R

Next PLC

01 November 2023

Third Quarter Trading Statement - 1 November 2023


 --   Full price sales (1) in the third quarter (August - October) 
       were up +4.0% on last year, GBP23m ahead of our guidance which 
       was to be up +2.0%. 
 --   We are increasing our full year guidance for profit before tax 
       by +GBP10m to GBP885m. 

1. Full price sales are VAT exclusive sales of items sold at full price in Retail and Online plus NEXT Finance interest income. They exclude items sold in Sale events, Clearance operations and through Total Platform. Full price sales are not statutory sales.


Full price sales performance versus last year, by business division, is set out below for the third quarter and the year to date.

Full price sales by division versus 
 last year                             Q3 to 28 October  Year to 28 October 
=====================================  ================  ================== 
Online                                            +6.5%               +4.9% 
Retail                                           - 0.6%               +0.4% 
                                       ================  ================== 
Total Product full price sales                    +3.8%               +3.2% 
Finance interest income                           +7.2%               +7.1% 
                                       ================  ================== 
Total full price sales inc. interest 
 income                                           +4.0%               +3.5% 


The chart below shows the performance by week during the third quarter. As can be seen, sales growth has been variable. We believe the volatility in sales performance is a result of changing weather conditions rather than any underlying changes in the consumer economy. In an Autumn season cooler weather is good for sales, warmer than average weather depresses sales. Over time the average performance is a better indicator of underlying consumer demand than any one week.

Click or paste the following link into your web browser to view the chart titled 2023 Full Price Sales Variance by Week Versus 2022. Refer to page 1 for this chart.



Our revised guidance for full year full price sales growth is now +3.1%; this assumes that full price sales for the rest of the year are up +2.0%. Profit generated from the additional sales achieved in the third quarter has added GBP10m to our full year forecast for profit before tax.

Our revised full year guidance is set out below. For completeness, our previous guidance is shown in grey.

                                                     Versus    Previous    last 
Full year guidance                   New guidance   last year   guidance   year 
===================================  ============  ==========  =========  ====== 
Full price sales                        GBP4.74bn       +3.1%  GBP4.72bn   +2.6% 
Group (2) profit before tax 
 (before exceptionals)                    GBP885m       +1.7%    GBP875m   +0.5% 
Pre-tax EPS (before exceptionals)          730.2p       +4.1%     723.9p   +3.2% 
Post-tax EPS (before exceptionals)         557.7p      - 2.7%     552.9p  - 3.6% 
                                     ============  ==========  =========  ====== 

2. Group profit before tax excludes the minority interests in Joules, Reiss and FatFace. This is therefore the profit attributable to shareholders of NEXT plc.

An exceptional gain of GBP110m

As set out in our Half Year Results in September, the acquisition of an additional equity stake in Reiss this year will result in an exceptional accounting gain (non-cash) of around GBP110m. This gain will be treated as exceptional and is excluded from the headline profit and EPS numbers given above. Full details of the transaction and the accounting gain were given on page 59 of our Half Year Results.


We are scheduled to give an update on sales to Saturday 30 December on Thursday 4 January 2024.

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.

Date:         Embargoed until 07:00 hrs, Wednesday 1 November 2023 
Contacts:     Amanda James, Group Finance Director 
               (analyst calls)                        Tel: 0333 777 8888 
               NEXT PLC 
              Alistair Mackinnon-Musson             Email: next@rowbellpr.com 
               Rowbell PR                            Tel: 020 7717 5239 
Photographs:  https://www.nextplc.co.uk/media/image-gallery/campaign-images 
------------  --------------------------------------------------------------- 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.



(END) Dow Jones Newswires

November 01, 2023 03:00 ET (07:00 GMT)

Next (LSE:NXT)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Next Charts.
Next (LSE:NXT)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Next Charts.