Next profit and sales rise

Next warns consumers of future price rises as it reports a 15% boost in profit.

The fashion retailer reports profit increased to £213m and group sales rose 5% to £1.6bn in the first half.

Next says that new space expansion and the “excellent” performance of its catalogue business Next Directory offset a -1.5% drop in like for like retail sales.

The chain warns that comparing like for like sales has “become a little confusing as a measure of performance”.

Next Directory registered a 9.5% increase in sales, 70% or which came via the internet.

The retailer says it has focused its marketing spend on “the most profitable methods” which boosted customer numbers.

Lord Wolfson, Next chief executive, warns that a sharp increase in the cost of cotton could mean clothing prices rising by between 5 and 8% next year.

However, Woflson does not expect a double dip recession or a “meltdown in consumer spending” despite the impact of Government sending cuts.

Last week, Next launched a French-themed television advert for its autumn/winter clothing range.

Recommended

Executive VP Vanjoki to leave Nokia

Ronan Shields

Anssi Vanjoki, Nokia’s executive VP and board member, has resigned just three days after the company announced the replacement of CEO Olli-Pekka Kallasvuo with Microsoft’s Stephen Elop.

Comments

    Leave a comment