Online Winter Clothing Sales Drive Increase
- Next raises full-year profit forecast by £7m due to stronger Christmas sales
- 1.5% increase in full-price sales from Nov 1 to Dec 24 driven by winter clothing online purchases
- Retail store sales dropped 6.1%, offset by 13.6% increase in online sales
- Central pre-tax profit guidance for Jan 2018 revised to £725m from £717m
- Challenges like reduced consumer demand and inflation remain, but may ease in 2018
- Expected surplus cash of about £300mn in 2019 to be returned to shareholders via share buybacks
Clothing retailer Next has increased its full-year profit forecast by £7 million due to stronger than expected Christmas sales. The period saw a 1.5% increase in full-price sales from November 1 to December 24, primarily driven by strong online sales for winter clothing as customers prepared for cold weather. While retail store sales dropped by 6.1%, this was partially offset by a 13.6% rise in online sales. The updated central pre-tax profit guidance for January 2018 now stands at £725 million, up from the previous estimate of £717 million. In its trading statement, Next mentioned that challenges such as reduced consumer demand and increased cost prices are expected to continue into the year ahead but may ease over time. The company anticipates generating approximately £300 million in surplus cash for 2019, which it plans to return to shareholders via share buybacks, subject to market conditions.
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Next’s improved profit forecast due to strong online sales during the Christmas period. It also mentions challenges for the year ahead and plans to return surplus cash to shareholders via share buybacks.
Noise Level: 4
Noise Justification: The article provides relevant information on the company’s financial performance and outlook, but it could benefit from more in-depth analysis of the factors affecting consumer demand and cost prices.
Financial Relevance: Yes
Financial Markets Impacted: Next’s stock price and other clothing retailers
Financial Rating Justification: The article discusses the financial performance of a clothing retailer, Next, and its impact on their profit forecast. It also mentions potential effects on shareholder returns and market conditions.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the text.
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