1. News
May 6, 2022

Next reports rise in retail sales for first quarter of 2022-23

The retailer has kept its profit before tax guidance for the full year unchanged.

British clothing and homeware retailer Next has reported a 285% increase in retail sales for the 13-week period to 30 April.

The company’s total online sales during the period declined by 11% compared with a year earlier, but were up 47% compared with 2019-20.

During this period, Next’s total product full-price sales reached 22%, while its full-price sales, including interest income, were in line with the company’s expectations, growing 21.3% from last year.

The retailer’s overseas full-price sales, excluding Ukraine and Russia, dropped by 7% against last year but rose by 60% compared with three years earlier.

The results come after Next closed its websites in Ukraine and Russia in March due to the ongoing conflict. 

In a statement, the company said: “Last year, most of our Retail stores were shut for the majority of the first quarter, which is why Retail growth is so strong at +285%.

“Conversely, last year Online sales were boosted by Retail closures, which is why we planned Online sales to be down in the first quarter against last year.

“Online sales against three years ago remained strong and were up +47% versus 2019/20.”

For 2022-23, Next has kept its profit before tax guidance unchanged at between £795m and £895m, where the midpoint of £850m would represent a 3.3% increase on last year.

The retailer also expects a full-price sales growth of 5%.

So far this year, Next has purchased 1.6 million shares for a total price of £107.5m.

Last month, the retailer partnered with a group of investors to acquire baby goods retailer JoJo Maman Bébé from its existing shareholders.

Under the terms of the deal, Next will hold 44% of JoJo Maman Bébé’s shares, with hedge fund Davidson Kempner managed or advised investment firms owning the remaining 56%.