Retailer Sees 4.8% Rise in Full Price Sales and 6.9% EPS Increase

  • Next increases full-year profit guidance by £20m to £860m due to strong Christmas sales
  • 4.8% rise in full price sales in nine weeks to 30 December 2022 compared to the previous year
  • Group’s EPS expected at 567.2p, up 6.9% from last year
  • Cost price inflation for Spring Summer season to peak at around 8%, with second-half inflation at 6%
  • Next plans to return £220m to shareholders through share buybacks in the coming year
  • Initial guidance for next year predicts a 1.5% drop in full price sales and a 7.6% decline in profit before tax

Next has increased its full-year profit guidance by £20 million to £860 million due to better-than-expected Christmas sales, with a 4.8% rise in full price sales during the nine weeks leading up to December 30th compared to the same period last year. The group’s Earning Per Share (EPS) is expected to reach 567.2p, representing an increase of 6.9% from the previous year. Next also anticipates cost price inflation peaking at around 8% for Spring Summer season goods and a maximum of 6% in the second half. The company plans to return £220 million to shareholders through share buybacks in the upcoming year, following ordinary dividends, which is expected to boost pre-tax EPS by 2.7%. Despite this positive outlook, Next remains cautious about the coming year’s prospects, with initial guidance suggesting a 1.5% decrease in full price sales and a 7.6% decline in profit before tax compared to the current year.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Next’s increased profit guidance, sales performance during the Christmas period, cost price inflation expectations, and plans for returning cash to shareholders. It also mentions the company’s cautious outlook for the year ahead. The information is relevant, objective, and well-structured without any clear signs of sensationalism or bias.
Noise Level: 3
Noise Justification: The article provides relevant information about Next’s financial performance and outlook, but it lacks in-depth analysis or exploration of long-term trends or consequences of decisions on those who bear the risks. It also does not offer significant actionable insights for readers.
Financial Relevance: Yes
Financial Markets Impacted: Next’s stock price may be impacted due to the increased profit guidance and expected share buybacks.
Financial Rating Justification: The article discusses Next’s financial performance, including increased profit guidance, sales growth, cost inflation, and plans for share buybacks, which are all relevant topics in the financial sector. These factors can potentially affect the company’s stock price and overall market sentiment.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.

Reported publicly: www.retailsector.co.uk