NEXT, a British clothing chain, has raised its profit forecast to £725 million after noticing an unexpected growth in sales during the past Christmas season. The sales were said to have increased by 1.5 per cent compared to 0.3 per cent at the same time last year.
However, the retailer’s current year forecast is still less than £790.2 million of 2017. During the 54-day review period till December 24, 2017, NEXT’s online sales increased by 13.6 per cent. On the other hand, its offline sales noted a 6.1 per cent decline during the same time.
Challenges such as subdued consumer demand and lower spending on clothing are expected to remain in 2018 as well. Despite this, the retailer is hopeful of a positive year ahead.
“Low footfall in brick and mortar is not a sign of death for the high street retailers as people have said,” underlined Chief Executive of NEXT, Lord Wolfson.
The retailer feels that it would be too early to issue a profit guidance for 2018 but if sales grow at positive 1 per cent, the Group expects to generate £ 300 million of surplus cash. Additionally, the company expects operating cost to continue to grow faster than sales.
NEXT will announce its final results for the full year on March 23, 2018. Stay tuned for updates.
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