Next Share Discussion Threads

[alex1621] 18/4/2018 10:55

In Next's last update I recall the CEO mentioned that the next couple of quarters should be an improvement on last year, because errors that where made during that period will not be repeated. He is known for underpromising and overdelivering ... so I wouldn't be at all surprised to see positive numbers. Weather might be a factor, but forward statements should carry more weight. Bear in mind that weather can boost sales also, so any slippage could be recovered in a good summer or autumn.

[thorpematt] 17/4/2018 23:01

TS is due in a few weeks. I am estimating that the terrible weather may have dented this seasons earnings somewhat. The lack of profit warning in the results surprised some analysts but does anyone have a view that a warning is more likely due to the weather of late or no?

[jettyboy] 16/4/2018 21:38

Rebranding Directory to Next Online.Pitching it as more than just clothes.

[iannewberry] 10/4/2018 20:35

Citigroup downgrade of Next

[qantas] 05/4/2018 11:23

Travel in stores looks like a good idea.

Virgin Holidays to open shops in fashion stores

Please do your own research.

[smicker] 23/3/2018 11:23

"Self-inflicted product ranging errors and omissions". Nice to see someone holding up their hand and refusing to blame it all on external factors.

[qantas] 23/3/2018 10:43

"Next's 54-page-long results release is a whopper but it is what is missing from the statement that matters more than what is in it - there is no profit warning, there is no dividend cut and there is no sense of panic," said Russ Mould, investment director at AJ Bell.

Well done next.

Please do your own research.

[qantas] 23/3/2018 10:42

How did the shorts get is so wrong?

In UK corporate news, Next bucked the trend, rallying 3% as it kept the dividend flat despite reporting a 5.6% fall in earnings per share after store sales fell in the year to 31 January. Analysts said the fact it has maintained its full-year guidance will be taken well following recent weakness and negative news flow from the UK retail sector.

Please do your own research..

[telbap] 23/3/2018 09:57

Good eoy report.. ...i am in boo....we needed this to show online growth to stop the share price kicking we have been getting over the last 2 weeks....thankyou next:-)

[qantas] 19/3/2018 09:21

Stay strong LONGS for a short attacks



Please do your own research...

[lordbung] 08/3/2018 13:26

Ah, it must be the John Lewis profit collapse.

[lordbung] 08/3/2018 13:21

What's happened here today?

[qantas] 22/1/2018 15:34

Amazing OCDO capitulation and how the institutional investors do get it wrong.

Loving it.

Please do you own research...

[lucicavi] 09/1/2018 16:15

Topped up here

[spob] 03/1/2018 09:19

"They have £915m corporate bonds which they are liable for"

which is fine when you are making 700m pa

[che7win] 03/1/2018 09:14

Spob, They have £915m corporate bonds which they are liable for.To me, it's all about their impressive cash flow.

[spob] 03/1/2018 08:13

no point shorting a stock with a balance sheet like that

and throwing off mountains of free cash flow

[spob] 03/1/2018 08:11

up around 9%

LOL

[tlobs2] 03/1/2018 08:07

Close hjs but no cigar ;-)

[spob] 03/1/2018 07:57

hjs

fingers crossed

as i havn't bought back in yet ;-)


to be honest though this statement looks fantastic to me, in the context of all the doom and gloom written about Next in the last year

[alex1621] 03/1/2018 07:56

What is important is "expectations", not the results per se. So was this update above or below expectations? 1.5% increase versus Numis forecast of - 0.5% ... so I suspect the numbers are above most analyst expectations. I don't expect much upside but should end the day positive.

[hjs] 03/1/2018 07:48

Imo this is a poor statement and next will open much lower than at yesterday's close. Cash flow and buy backs will not help push the share price any higher.

[spob] 03/1/2018 07:30

Full Price Sales and Profit Guidance for the Current Year

Better than expected full price sales means that we are marginally upgrading our profit guidance. Our central guidance for Group profit increases by £8m to £725m and our profit guidance range is now £718m to £732m. Where we fall within this range will depend on our sales in January.




OUTLOOK FOR SALES, PROFIT, CASH FLOW AND EPS IN THE YEAR AHEAD
Sales

Many of the challenges we faced last year look set to continue into the year ahead. Subdued consumer demand driven by a decline in real income, the increase in experiential spending at the expense of clothing, and inflation in our cost prices remain challenges for 2018. However, we believe that some of these headwinds will ease as we move through the year; we already know that cost price inflation will reduce to 2% in the first half and believe it will disappear in the second half.

We are budgeting for full price sales next year to grow by between -2% and +4%. The mid-point of +1% represents a modest improvement on this year's anticipated growth of +0.3%.
Profit

It is very early to be issuing profit guidance for the year ahead, but if sales do grow at +1% we estimate that Group profit would be around £705m. This is marginally down on the current year as we expect operational costs to continue to grow faster than sales.
Cash Flow and EPS

We estimate that at our central guidance of £705m Group profit we will generate around £300m of surplus cash. Surplus cash is cash flow after capital expenditure, interest, tax and ordinary dividends but before financing any increase in Directory debtors (which we would fund through long-term bonds and bank facilities). It is our intention to distribute this surplus cash to shareholders by way of share buybacks, subject to market conditions. As at 1 January's share price of £45.25 a £300m buyback would retire 4.7% of the Company's share capital and on a full year basis boost Earnings Per Share by a similar amount. We will see some of this enhancement in the year ahead and at our central guidance, Earnings Per Share would move forward by +1.1%.