TIDMNXT

RNS Number : 9403R

Next PLC

01 November 2023

Third Quarter Trading Statement - 1 November 2023

HEADLINES

 
 --   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 BY BUSINESS DIVISION

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% 
 

FULL PRICE SALES GROWTH BY WEEK

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.

http://www.rns-pdf.londonstockexchange.com/rns/9403R_1-2023-10-31.pdf

GUIDANCE FOR FULL PRICE SALES, PROFIT AND EARNINGS PER SHARE

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 
                                                     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.

CHRISTMAS TRADING STATEMENT

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 
------------  --------------------------------------------------------------- 
 

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END

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