Next (LON:NXT) has revealed better sales than expected for the third quarter of this year.
The fashion retailer raised its profit forecast for the year from £300 million to £335 million.
Despite the pandemic, sales for the three months ended October 24th were 2.8% higher than in previous years.
The end of the year net debt is projected to be reduced by £487 million to £625 million.
Retailer homes and children’s clothing are very performant, but the demand for formal and opportunity clothing for men and women is weak.
In retail, out of town, retail parks continue to perform better than high streets and shopping centres. Next online sales were strong in the quarter, up 23.1%.
“We have revised the fourth quarter guidance scenario, which is described below. Our estimates remain very high uncertainty and will depend heavily on the progress of the pandemic, along with the reaction of the government and consumers to development,” he said in a statement.
“Assumptions for each scenario regarding further lockdowns, retail scaffolding, capacity constraints, and inventory are also listed on the table. We don’t want to give the impression that the assumptions below and their results are scientific or accurate. They aim to show the kinds of things that may help or hinder sales on the run up to Christmas.”
“The biggest unknown is whether England, Scotland and Northern Ireland follow Wales’ decision to close non-essential retail stores. With the two-week lockdown in the UK, Scotland and Northern Ireland in November, retail price sales will be reduced by around 57m3 pounds (timing dependent), accounting for 17% of retail total price sales and 6% of the group’s total price sales for the quarterly.”
Next (LON:NXT) shares are trading at 6.120,00 (0851GMT).
