Next beats expectations

2nd Nov 2011 07:37

Next, the fashion retailer, has seen a 3.3% increase in group sales in the third quarter compared to the same period of 2010.The figure is flattered, however, by new store openings, with Next saying 3.4% of sales growth was down to new space; when those numbers are stripped out it appears like-for-like sales were down 0.1%The figures also show the high street operation falling back by 3.3% in the quarter from a year earlier, but Next Directory, the online and catalogue offering, 16.9% ahead for the quarter and 15.8% ahead for the year-to-date. Year-to-date, sales at the high street chain are down 2.3% on last year. All sales figures exclude value added tax.Overall, these figures appear better than analysts were expecting. Deutsche Bank had thought high street revenues would be down 6.5% and Liberum Capital anticipated a 4% decline in like-for-like sales. Next is ahead of those predictions.The group is predicting sales growth between 2.5% and 4% for the year and profit before tax between £550m and £585m."We remain confident that we will see no further increase in selling prices in the first half of the year. Early indications are that this trend will continue into the second half of 2012," the company said.BS