Next, one of the UK’s largest and most profitable fashion retailers is growing steadily and the numbers show it. Next’s Directory catalogue and internet business have given rise to the retailer’s successful sales that resulted in shares shooting through the roof. Second-quarter sales beat all expectations with 0.7% increase and 11.4% take off from its Directory catalogue and internet business. Next Retail’s full-price sales fell by 7.4% as a result of the current consumer climate and its shares topped the FTSE 100 in morning trade, shooting up a 6.3%. Next announced it would pay a special quarterly dividend of 45p.
ETX Capital’s spokesperson, Neil Wilson said: "Next said it now expects to deliver £307m of surplus cash this year, having guided that to be £255m in May. The leap in surplus cash has investors eyeing up more dividends.”
Next’s second-quarter sales is a result of ‘solar boost’ combined with the company’s improving product ranges and rendering their website more user-friendly. Equity analyst at Hargreaves Lansdown, George Salmon, explains: "After the steady flow of bad news over the last 18 months or so, which has seen the shares halve from their 2015 highs, sales trends at Next have improved in recent weeks.
"While this update provides a welcome tonic to shareholders, it's clear Next is still feeling the heat."
Salmon added that even with the "solar-powered boost" to its second-quarter sales, the company was still expecting second half sales to fall but much to their surprise, it didn’t.
Next reports it expects full-year sales to be anywhere between 3% down and 0.5% up, tightening the lower end of its sales guidance range by 0.5%.
With over 500 outlets in the UK, Next has been selling clothing, footwear and home products to British and international customers alike for more than 150 years.
The Editorial Team, Point Franchise ©