Next downgrades profit guidance as war in Europe set to hit sales

Leicester retail giant Next is downgrading its profit and sales forecasting after reporting that the closure of its Russian and Ukrainian websites will cost it £18m this year.

Next says it now expects turnover to be £85m lower than expected, while it has also lowered its profit forecast by £10m.

Despite this, the firm has reported strong results for the 12 months to January 2022. Sales were up by 12.8% tpo £4.8bn compared to two years ago, while profits also rose by 10% to £823m.

A statement signed off by chairman Michael Roney said: “We enter 2022 with confidence in the outlook for our business and its ability to continue its successful evolution. The effects of the pandemic are ongoing and we remain mindful of macroeconomic and geopolitical risks, but our continued investment over many years in our people and our systems has generated strong and resilient results in the past year and we believe that it will continue to do so.”