Next Lifts Profit Forecast Again

Next Lifts Profit Forecast Again

October 28, 2020

Next Plc raised its annual earnings forecast for the third time as its recovery from a nationwide lockdown continues.

The clothing retailer, a linchpin of many British shopping areas, now expects a pretax profit of 365 million pounds ($476 million) for the year. The midpoint of the company’s previous forecast was 300 million pounds.

Key Insights

  • Next’s performance has been steadily improving as online sales continue to rise and the stores recover from a three-month mandatory shutdown in the spring at the height of the pandemic.
  • The retailer’s current outlook is very different from April, when its worst-case scenario was a loss of 150 million pounds and its midpoint was no profit at all.
  • Next said the tightening of restrictions on social interaction in many parts of the U.K. hasn’t affected business. Third-quarter sales were up 2.8% from the same time last year. It now expects full-year sales to be down 17%, compared with an earlier estimate for a drop of 20%.
  • Chief Executive Officer Simon Wolfson said uncertainty still remained, and the “biggest single unknown” is whether England, Northern Ireland and Scotland will follow the Welsh government and shut non-essential retail shops again to help curb the pandemic.

Market Reaction

  • Shares of Next have fallen just over 13% since the start of the year.

Get More

  • Read the full statementhere

Source: Read Full Article