Essential reading for retailers and suppliers in the home improvement market

Next announces results for year ending January 2020

Published: 19 March 2020 - Alex Fordham
 

Next Plc has announced its results for its year ending January 2020. Next brand full price sales were up 4.0% and brand total sales (including markdown sales) were up 3.5% on last year. 

Group profit before tax was up +0.8% and Earnings Per Share (EPS) were up +5.6% on last year. Group profit of £728.5m was just ahead of the guidance of £727m given in its January 2020 Trading Statement, due to better than expected full price sales in January.

The Next chief executive, Simon Wolfson, also commented on the Coronavirus pandemic. He stated: 

"The evidence we have from sales to date in the UK and from our (small) international websites in the worst affected countries is that:

?  Demand will be the biggest issue and although the virus is likely to impact our operations, we do not believe this will be as damaging as the very significant drop in sales sustained both in retail and online.

?  Online sales are likely to fare better than retail but will also suffer significant losses. People do not buy a new outfit to stay at home. There is some evidence from our overseas sites that as restrictions on movement increase, the difference between online and retail sales performance widens, with online picking up a small amount of the business that cannot be carried out in store.

?  Some product areas are likely to fare better than others. To date, our homeware and childrenswear sales appear to be less affected than our adult clothing lines.

"Our priority is to do all we can to keep our workplaces and shops as safe as possible for customers and staff. At the same time we must prepare the business for varying levels of sales declines. To that end we have modelled the effects of differing levels of sales declines along with all the measures we can take to ensure that the Company remains within its bond and bank facilities."

Comments


(Your email address will not be published)
Already Registered?
Sign In
Not Yet Registered?
Register
Printable View E-mail Bookmark
*

What do you think?

The coronavirus (Covid-19) is affecting everyone and completely changed our way of lives for the foreseeable future. Small business owners and the self-employed have been hit particularly hard financially, with many not being able to work or having to close up completely. DIY Week is keen to learn how you are coping and to share this information with others who may well be in the same boat, so thank you for taking part in this survey.
How has your business been affected by the coronavirus (Covid-19) pandemic?




Latest reader comments

re: A guide to construction safety for home builders

Daniel Wood
Safety should always be the first priority. If followed properly, these precautions are all we need to tackle all unwanted accidents. I ...

re: Further Homebase closures ahead

Shaun Collorick
Cheltenham homebase has closing down signs outside, but not Gloucester homebase.... Yet!...

re: B&Q sales slide, as Screwfix decision to exit German market costs millions

B&Q bob
No surprises from us on the shopfloor management paralysed by fear of jobs and to weak to take chances so bumble around. Ranges boring, and ...

re: Further Homebase closures ahead

Miss l'a tesha gc Wilson
Please keep me updated regards all Store closures Thank you...

re: Graham Bell to head up B&Q as part of Kingfisher reshuffle

Peter Earl
I HOPE GRAHAM BELL THE NEW CEO OF B&Q GETS TO GRIPS OF THE COMPANY VERY SOON.MY WIFE WENT FROM SHADOXHURST TO GILLINGHAM TO GET SOME ...

Most read stories