Daily Newsletter

25 September 2023

Daily Newsletter

25 September 2023

NEXT’s H1 total group sales increased 5.4%

The retailer expects profit before tax to be from £845m to £875m in full year to January 2024.

Jangoulun Singsit September 22 2023

UK-based clothing retailer NEXT has reported total sales of £2.63bn ($3.23bn) in the six months to July 2023, up 5.4% from £2.50bn from the period a year ago.

During H1, the brand's full price sales increased by 3.2% against the prior year period figure.

Online sales were up by 5.0% to £1.49bn while retail sales increased 0.5% to £885.0m during the period.

NEXT’s profit from trading over the period was £426.9m, up 4.7% from £407.8m a year ago and its operating profit increased by 5.1% to £456.4m.

The retailer delivered profit before tax (PBT) of £419.8m up 4.8% from £400.6m a year ago, but its profit after tax declined by 2.0% to £321.8m from £328.5m a year ago.

Its earnings per share (EPS) were 264.5p, up 0.8% from 262.3p in the prior fiscal year.

For the full year to January 2024, NEXT increased its brand's full price sales growth guidance from 1.8% to 2.6%.

It increased profit before tax guidance to £875m from previous guidance of £845m, an increase of 0.5% on last year.

NEXT expects EPS before tax to be 723.9p, an increase of 3.2% from the previous fiscal year. Meanwhile, EPS after tax is anticipated to be down by 3.6% to 552.9p.

Earlier this month, the retailer entered into an agreement to purchase Warburg Pincus’ entire 34% stake in Reiss fashion house for a total consideration of £128m on a fully diluted basis.

Traditional AI is here to stay in the retail and apparel space

Initially, retailers used AI for basic tasks, including inventory management and demand forecasting. However, its usage has now become more prevalent in other aspects such as personalized marketing, customer service, pricing optimization, and supply chain management. With the rise of ecommerce and the increasing importance of data-driven decision-making, AI adoption in retail and apparel has accelerated. The industry now relies on AI to enhance the shopping experience, optimize business operations, and gain an overall competitive edge.

Newsletters by sectors

close

Sign up to the newsletter: In Brief

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Thank you for subscribing

View all newsletters from across the GlobalData Media network.

close