REG - Next PLC - Trading Statement

NextAnnouncement

02/11/2022 07:00

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RNS Number : 9956E  Next PLC  02 November 2022

Trading Statement - 2 November 2022

HEADLINES
 ·    In the thirteen weeks to 29 October full price sales(1) were up
 +0.4%(2) versus last year.  This was slightly ahead of our
 expectations.
 ·    We are maintaining our guidance for full year profit before tax at
 £840m, up +2.1% versus last year.  Based on this profit guidance, Earnings
 Per Share of 554.5p would be up +4.5% versus last year.

( )

(1) Full price sales are total sales excluding VAT, less items sold in our
Sale events, our Clearance operations and through Total Platform.  These are
not statutory sales.

(2) Full price sales excluding Russia and Ukraine were up +1.5%.

 

FULL PRICE SALES GROWTH BY WEEK

Our week by week full price sales performance is set out in the chart below.
The grey bars are the five weeks since our last trading update, given in our
Half Year Results in September.  Full price sales in the last five weeks have
been up +1.4%, boosted by one particularly strong week at the end of
September, when temperatures dropped and sales of heavier weight products
improved.

Click or paste the following link into your web browser to view the chart
titled 2022 Full Price Sales Variance by Week Versus 2021. Refer to page 1 for
this chart.
http://www.rns-pdf.londonstockexchange.com/rns/9956E_1-2022-11-1.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9956E_1-2022-11-1.pdf)

 
Q3 FULL PRICE SALES PERFORMANCE BY BUSINESS CHANNEL
 Full price sales (VAT exclusive) by division versus last year  Q3 to 29 October

 Online                                                         - 1.9%
 Retail (UK and Ireland)                                        +3.1%
 Total Product full price sales                                 - 0.1%
 Finance interest income                                        +8.9%
 Total full price sales including interest income               +0.4%

 

FULL PRICE SALES GROWTH BY MONTH AND REST OF YEAR FORECAST

We are maintaining our previous guidance for full price sales for the rest of
the year to be down -2% versus last year.

Click or paste the following link into your web browser to view the chart
titled Q3 Full Price Sales Performed by Month and Q4 Forecast. Refer to page 2
for this
chart. http://www.rns-pdf.londonstockexchange.com/rns/9956E_1-2022-11-1.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9956E_1-2022-11-1.pdf)

 
GUIDANCE FOR FULL PRICE SALES, PROFIT & EPS

Our guidance for sales and profit remains unchanged and is set out in the
table below.  The difference in the growth in Earnings Per Share and profit
before tax is due to share buybacks completed since January 2022.

 Guidance for 2022/23                  Latest guidance
 Rest of year full price sales growth  - 2%
 Profit before tax                     £840m
 Profit before tax versus 2021/22      +2.1%
 Earnings Per Share                    554.5p
 Earnings Per Share versus 2021/22     +4.5%

CHRISTMAS TRADING STATEMENT

We intend to give an update on sales to Saturday 31 December on Thursday 5
January 2023.

Note for Analysts Concerning EPS Comparison with September Guidance

In our September guidance, the boost to EPS from share buybacks was largely
offset by an expected decrease in the value of our deferred tax asset.  This
was caused by the proposed reduction in the future Corporation Tax rate as
announced in the September mini-budget. Now that decision has been reversed by
the Government, the value of our deferred tax asset will not be reduced so we
anticipate getting the full benefit of EPS enhancement from share buybacks in
the year.

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 2 November 2022
 Contacts:      Amanda James, Group Finance Director (analyst calls)                 Tel: 0333 777 8888
                Alistair Mackinnon-Musson, Rowbell PR                                Tel: 020 7717 5239

 Photographs:   https://www.nextplc.co.uk/media/image-gallery/campaign-images
                (https://www.nextplc.co.uk/media/image-gallery/campaign-images)

 

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