Fashion retailer Next revealed it lost £22m in full-price sales because of snow in the run-up to Christmas but it remains on track to increase profits by between 7% and 10% this year.
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Like-for-likes were down 6.1% between August 1 to December 24. The retailer said Christmas sales were “significantly affected” by the bad weather and increased discounting by rivals. Next estimated that £22m of lost sales represented about 2.2% of the season’s total.
Next also admitted limited stock availability of best-selling lines had an effect of sales.
Total Next brand sales between August 1 to December 24 were up 0.2%, just within guidance. The retailer is on track to make £540m to £555m this year.
Retail sales were down 3.1% over the period but Next Directory generated a sales rise of 8.7%.
The retailer reiterated that prices will increase in 2011 by around 8% - the higher end of its guidance given in November. It said the impact of the price rises along with the impact of Government cuts on consumer spending made the outlook for the year ahead uncertain.
Next said: “Our best guess is that price rises will moderately suppress like for like sales, though we believe this will be offset by the addition of profitable new retail space and continued growth of Directory’s online business
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