Retailer Beats Q1 Estimate by £75m as Online Sales Soar
- Next increases full-year profit guidance to £720m
- 65% increase in online sales
- Covid-19 restrictions easing boosted sales
- Overall sales marginally declined at the start of the year
- Full price sales up 19% in last three weeks
- Next trading update on 4 August
Next has increased its pre-tax profits guidance for the full year to £720m from £700m after seeing a surge in sales. The retailer previously forecasted that in its 13 weeks to 1 May, sales would be down by 10%. However, due to a 65% increase in online sales and Covid-19 restrictions easing, the retailer beat its Q1 estimate by £75m. Overall sales marginally declined 0.6% at the start of the year by £5m when the third lockdown was underway and affected trade. The retailer added that “very few” of the retail sales lost on adult clothing were recovered online. In the last three weeks whilst lockdown restrictions were easing, sales were reportedly ‘exceptionally strong’ compared with two years ago, with total full price sales up 19%. With sales carrying on this way, the retailer now expects full price sales for the rest of the year to be 3% higher than in 2019. The next trading update will cover the first 26 weeks of the year to 31 July 2021 and is scheduled for Wednesday 4 August 2021.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Next’s increased pre-tax profits guidance, the impact of online sales, and the retailer’s expectations for full price sales for the rest of the year. It also mentions the effects of Covid-19 restrictions on sales. The information is relevant to the main topic and not overly dramatic or opinionated.
Noise Level: 5
Noise Justification: The article provides relevant information about Next’s increased pre-tax profits due to a surge in online sales and easing of Covid-19 restrictions. However, it lacks in-depth analysis or exploration of long-term trends or consequences of decisions on those who bear the risks.
Financial Relevance: Yes
Financial Markets Impacted: Next’s stock price and other retail stocks
Financial Rating Justification: The article discusses Next’s increased pre-tax profits guidance, sales performance, and expectations for the rest of the year, which are all financial topics relevant to the company and the retail industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article. The text discusses a positive development for Next, with increased profits and strong sales due to online growth and easing of Covid-19 restrictions.
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