Next shareholders set for late Christmas present after strong festive trading
Next has continued its strong trading performance after revealing this morning (January 6) that sales in the eight weeks to Christmas were up by a fifth on 2020 figures.
The strong festive trading has meant that the Leicester retail giant has upgraded profit expectations for its year-end results by £22m to £822m. For the year ending January 2023, Next has said it expects full price sales to be by 7% on this year.
On the back of these positive figures, Next has announced a special dividend of 160p per share to be paid at the end of this month.
Richard Lim, CEO, Retail Economics said: “These are mightily impressive results and demonstrate the growing strength of the brand and its agility to operate through the ongoing challenges posed by the pandemic. The results shine an optimistic light on the resilience of consumer demand and the effortless transition shoppers now make between buying online and in-store as behaviours become more self-governed. Despite problematic supply chains, rising operating costs and pricing pressure from suppliers, profitability remained strong throughout the period as consumers needed little encouragement to spend.
“The outlook for 2022 looks more challenging. For many households, this year will be a ‘pinch point’ as the combination of tax hikes and a rise in the cost of living erode incomes. Inflation is expected to peak in the Spring as both a rise in the energy price cap and National Insurance Contributions hit in April, having a disproportionate impact on the least affluent households. Real incomes are expected to be no better by the end of the year than at the start.”
Next will announce its results for the full year ending January 2022 on Thursday 24 March.
