Next posts Christmas sales rise, trims profit guidance

The fashion and homewares retailer posted a 1.5% rise in full-price sales in the quarter to December 29, driven by a 15.2% rise in online sales to £17m.

Physical sales declined 9.2% to £16m during the period.

In the year to date, the retailer recorded a 3.2% increase in full price sales while product full price sales increased 2.6%.

Despite this sales uplift, Next has trimmed its full-year profit forecast 0.6% to £723m.

The retailer attributed this £4m dip in profit expectations to higher sales of seasonal gifts including personalised items and beauty products, which impacted overall margins to the tune of £1.5m.

The retailer’s strong online sales also led to higher than anticipated operational costs, which amounted to £2.5m.

Stock in the retailer’s end of season sale including its Black Friday offers were up 3% year on year.

Next said it anticipated full-price sales growth of 1.7% in its upcoming financial year as online sales increased 11% while retail sales declined 8.5%, but warned that “any sales forecast made in January comes with a high degree of uncertainty.”

“This year uncertainty around the performance of the UK economy after Brexit makes forecasting particularly difficult,” the fashion retailer said.

“We have not factored into our sales estimates the potential benefits of a smooth transition or the downsides of a disorderly Brexit.”