Next PLC Trading Statement (0537O)

TIDMNXT

RNS Number : 0537O

Next PLC

02 November 2016

 
 Date:          Embargoed until 07.00hrs, Wednesday 2 
                 November 2016 
 
 Contacts:      Lord Wolfson, Chief Executive 
                Amanda James, Finance Director (analyst 
                 calls) 
                NEXT PLC                           Tel: [phone] 
                                                    8888 
 
                Alistair Mackinnon-Musson          Email: [e-mail] 
                Rowbell PR                         Tel: [phone] 
                                                    5239 
 
 Photographs:   http://press.next.co.uk/media/company-images/campaignimages.aspx 
 

NEXT plc

Trading Statement - 2 November 2016

SALES FOR THE YEAR TO 31 OCTOBER 2016

Sales Year to Date

Total sales including markdown sales, for the year to date, are up +0.4% on last year. Markdown sales have grown faster than full price sales due to a much larger end-of-season Sale in July. Full price sales for the year to date are - 1.5% on last year.

Sales for the Third Quarter

In September we gave guidance that trading in the third quarter would be difficult. In August full price sales were subdued following the much larger end-of-season Sale in July, and in September we traded against our best month last year. October sales improved significantly, as comparative weeks last year became less challenging. The bar graph below shows the percentage year on year change in full price sales, by month for the third quarter.

Click or paste the following link into your web browser to view the chart titled '2016 Full Price Sales Growth by Month vs 2015' Refer to page 1 for the relevant chart.

http://www.rns-pdf.londonstockexchange.com/rns/0537O_-2016-11-1.pdf

Summary

The table below sets out full price sales for the third quarter and year to date for Retail and Directory.

 
 Full Price Sales       Third Quarter       Year 
  (VAT exclusive)           to 31 Oct    to Date 
=====================  ==============  ========= 
 NEXT Retail                   - 5.9%     - 4.7% 
 NEXT Directory                  0.0%      +3.2% 
                       ==============  ========= 
 NEXT Total                    - 3.5%     - 1.5% 
 Of which sales from 
  new space                     +1.3%      +1.4% 
 

FULL PRICE SALES AND PROFIT GUIDANCE FOR THE FULL YEAR

We have narrowed our sales guidance to -1.75% to +1.25%, this compares to our previous range of -2.5% to +2.5%. The mid-point of our new sales range is marginally lower than previous guidance. However, cost savings have also been better than expected, so our central profit forecast (as set out in our September report and presentation) remains unchanged at GBP805m(1) .

The table below sets out our revised sales range for the full year. This results in a profit range of GBP785m to GBP825m. This corresponds to growth in Earnings Per Share of between -1.3% to +3.7%.

 
 Guidance Estimates              New Guidance       Previous Guidance 
 Full Year to January            Lower     Upper      Lower      Upper 
  2017 (52 v 52 week basis) 
============================  ========  ========  =========  ========= 
 Total full price NEXT 
  sales v LY                   - 1.75%    +1.25%     - 2.5%      +2.5% 
 Group profit before tax       GBP785m   GBP825m    GBP775m    GBP845m 
 Group profit before tax 
  v LY                          - 4.4%     +0.5%     - 5.6%      +2.9% 
 Earnings Per Share v 
  LY (2)                        - 1.3%     +3.7%     - 2.5%      +6.3% 
============================  ========  ========  =========  ========= 
 

CHRISTMAS TRADING STATEMENT

We intend to issue our usual sales update for the period to 24 December 2016 on Wednesday 4 January 2017.

Forward Looking Statements

Certain statements in this Trading Update are forward looking statements. These statements may contain the words "anticipate", "believe", "intend", "aim", "expects", "will", or words of similar meaning. By their nature, forward looking statements involve risks, uncertainties or assumptions that could cause actual results or events to differ materially from those expressed or implied by those statements. As such, undue reliance should not be placed on forward looking statements. Except as required by applicable law or regulation, NEXT plc disclaims any obligation or undertaking to update these statements to reflect events occurring after the date these statements were published.

(1) See Half year results (July 2016) analyst slides on our website: Profit Scenario 2016/17 (e), slide number 56 - Link here

(2) The EPS calculation assumes total share buybacks this year of GBP188m, which have already been completed.

END

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTFFLLBQFFLFBB

(END) Dow Jones Newswires

November 02, 2016 03:00 ET (07:00 GMT)