Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Next reveals 19 percent increase in first-half profits

Published 11/09/2014, 07:47
Next reveals 19 percent increase in first-half profits
NXT
-
MKS
-

LONDON (Reuters) - Next (L:NXT), Britain's second biggest clothing retailer by sales value, reported a 19.3 percent rise in first-half profit, with growth at both its stores and home shopping business.

The group, which trades from over 500 stores in Britain and Ireland, about 200 stores overseas, and through its Directory internet and catalogue business, said pretax profits were 324.2 million pounds (525 million US dollar) in the six months to July, up from 271.8 million pounds in the same period last year.

Next is outperforming rivals, such as Marks & Spencer (L:MKS), because of a strong online offer, a constant stream of new store openings and diversification into new product areas, such as homewares, as well as new overseas markets.

The group said on Thursday that its strong performance had in some part been down to external factors, such as the improving economy, low interest rates and availability of credit, which may be less favourable next year.

Next reiterated the guidance it issued in July, when it raised its outlook for annual sales and profit for the second time in three months, forecasting 2014-15 sales growth of 7-10 percent and a pretax profit of 775-815 million pounds, up 11-17 percent.

© Reuters. A general view of the newly opened Trinity shopping centre in Leeds

The retailer also provided more specific guidance about the sales target, predicting third-quarter growth of 10 percent and fourth-quarter growth of 4 percent, due to the tough comparatives it expects.

(Reporting by Kate Holton; editing by Jane Merriman)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.