THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE

Next reports fall in profits

Fashion and homewares retailer Next has reported that its full year underlying pre-tax profit has fallen by 3.8% to £790.2 million.

FASHION

Next reports fall in profits

Fashion and homewares retailer Next has reported that its full year underlying pre-tax profit has fallen by 3.8% to £790.2 million.

In the year to January 2017, total group sales edged down 0.3% to £4.1 billion.

Total sales for Next’s high street stores declined by 2.9% with profits down 15.8% although Next Directory grew its sales by 4.2% as more customers shopped online. In addition, the Directory benefited from improved stock availability, enhanced website functionality and overseas growth.

Next chairman John Barton said: “As anticipated, the year to January 2017 was a challenging year for Next."

He added: “Trading conditions in the year ahead will continue to be tough, however I believe that by focusing on our core strengths, as we did during 2008, we will see Next emerge from this period stronger than before.”

Net trading space increased by 330,000 square feet in the year, taking the portfolio to eight million square feet. Store numbers remained broadly the same, with the increase in new space being offset by the closure of smaller, less profitable stores.

In the months ahead, Next plans to focus on improving the company's product, marketing, services, stores and cost control.

Next said it is remaining "extremely cautious" about the coming year with Lord Wolfson, Next chief executive, adding: “The clothing sector faces three potential threats: a sectorial shift away from spending on clothing, price inflation as a result of Sterling's devaluation and potentially weaker growth in real incomes in the wider economy.

“These headwinds are likely to be felt most acutely in our retail business, as sales continue to migrate away from the High Street to online shopping.”

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

The HR Summit 2018
The HR Summit 2018
Wednesday 3 October 2018
The Cavendish Conference Centre, London W1
The 10th HR Summit 2018, The Cavendish Conference Centre, London W1, 3rd October 2018
The Retail Design Seminar 2018
The Retail Design Seminar 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Seminar 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
National Minimum Wage Breakfast Briefing
National Minimum Wage Breakfast Briefing
20 September 2018
6th Floor 1, St. Martin's Le Grand London, EC1A 4AS
National Minimum Wage Breakfast Briefing
Fix The Dinosaur Roundtable 2018
Fix The Dinosaur Roundtable 2018
19 October 2018
The Euston Suite, The Hallam, 44 Hallam St, London W1W 6JJ
A Masterclass in IBMi Legacy Issues