default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

British Retailer Next Raises Profit Outlook Again

Next store | Source: Shutterstock

British clothing retailer Next on Wednesday raised its full-year profit outlook for the fourth time in six months as it reported a 5.9 percent rise in first-half profit on a two-year basis, benefiting from strong trading since COVID-19 restrictions ended.

Next, which trades from about 500 stores as well as online, made a pretax profit of £347 million ($474 million) in the six months to July, on full-price sales up 8.8 percent versus 2019 — before the COVID-19 pandemic started to disrupt trading.

The group said full-price sales in the last eight weeks increased 20 percent versus 2019, materially exceeding its expectations.

It raised its full-price sales guidance for the rest of the 2021-22 year to up 10 percent, versus up 6 percent previously, and its forecast for pretax profit to £800 million, £36 million ahead of its previous guidance.

Next has shown great resilience during the pandemic, benefiting from its long-established and well invested online operations.

Rivals with weaker or no online business, notably Primark, saw large falls in sales. Others, such as Topshop-owner Arcadia, and Debenhams have gone bust.

Shares in Next, up 37 percent over the last year, closed Tuesday at 8,080 pence, valuing the business at £10.9 billion.

By James Davey, editors: Paul Sandle and Kate Holton.

Learn more:

Jack Wills Founder Relaunches Aubin Brand With Backing From Next

The British high-street retailer has taken a 33 percent stake in the label and will also provide e-commerce infrastructure to support its operations. The financial terms of the deal were not disclosed.

In This Article
Topics

© 2022 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Retail
Chronicle the ‘Retail Apocalypse’ and emerging retail models, including DTC brands.

Aviator Nation’s pricey sweatpants and cashmeres had a cult following before they were swept up in the “dopamine dressing” phenomenon. Now, founder Paige Mycoskie – still the brand’s only shareholder – is ready to see just how big her vision for California surfer cool can get.


Small stores can remain competitive by scaling their private labels, testing new store concepts, and offering brands consumers can’t find on Farfetch or in Selfridges.



view more

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
How to Build a Profitable DTC Brand
© 2023 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions and Privacy policy.
How to Build a Profitable DTC Brand