November 28, 2022


Expect exquisite business

No Christmas sales boom, Next warns

Subsequent has poured cold h2o on the prospect of a festive year profits growth immediately after warning that provide chain troubles and shortages of lorry drivers and warehouse employees would hold back again advancement. 

The retailer posted a 14pc boost in profits in the previous 5 weeks compared to the exact same time period pre-pandmeic, but flagged a slowdown in trade for the relaxation of the 12 months. 

Variables which includes labour shortages and the wider provide chain disruption, as well as dwindling pent-up need and frail buyer confidence, would mean a profits boost of just 10pc in the next quarter, Subsequent claimed.  

Stock availability experienced enhanced but remained “difficult”, the corporation claimed. It warned that value rises in “vital merchandise” these as fuel may well “reasonable need” and reduced profits advancement through the festive year. “The results of pent‐up need are very likely to continue to diminish.” 

However, Subsequent preserved its comprehensive-12 months earnings assistance of £800m as it posted a 17pc rise in profits in the three months to October 31 compared with the exact same time period in 2019. 

Online profits were also up by almost 50pc in the 12 months to October, boosted by third-get together model buys, whilst in-retail outlet profits were down close to 30pc.