Omnichannel retailer Next has reported a 2% dip in online sales to £3 billion, up by 40% against the pre-pandemic period.
In the year ended January 2023, Next, which recently announced the acquisition of Cath Kidston, stated that its full-year results beat exceptions, but forecasts a drop in profits and sales in its current year.
Operating profit online fell by 23% to £467.3 million, but was up 12% compared to three years ago.Retail operating profit soared 125% to £240.5 million, 3% against the pre-pandemic year.
Pre-tax profits increased by 5.7% to £870.4 million in the period, £10 million above its previous guidance, thanks to its retail and total platform business. Physical retail sales also increased by 30% to £1.86 billion, up by 1% against the pre-pandemic period.
Next has been ranked as an Elite retailer in the 2023 RXUK Top500 report, click here to download.
The retailer also revealed it is expecting prices to rise by 7% in the spring and summer of 2023, and 3% in the autumn and winter – slightly less than the increases it warned of in January this year.
Despite the strong performance, Next maintained its current year guidance that sales would decrease by 1.5% and profits would come in £75 million lower.
However, Next also claimed it “can return to higher levels of growth once the cost-of-living crisis has passed”.
This comes as Next branded the business as “established but not standing still”, claiming it had developed “outstanding assets and skills” that can deliver growth outside its heartland business, and stated it had new avenues of growth which are “proven, but at early stages in their development.”
Next’s recent acquisitions of Reiss, JoJo Maman Bébé, Sealskinz, Joules, Made.com, Swoon, Aubin, alongside its stake Victoria’s Secret and GAP’s UK franchise reported £16.8 million profit to the group.
The full implementation of two new websites for JoJo Maman Bébé and Made.com, and the development of Joules’ website is planned for April next. year, the group revealed.
“It has been a good year for Next. We have embraced the various challenges and seized the opportunities that have arisen,” Next chairman Michael Roney said.
”We have prepared (and budgeted) for a difficult year. We are very clear on our priorities.”
He added: “If we continue to improve our product ranges, relentlessly manage our costs and upgrade our customer service, whilst also developing new business opportunities; we can lay the foundations for an exceptionally strong business and still deliver healthy profits, cash flow and dividends.”
