Clothing & ShoesHigh StreetNews

Next Q3 sales fall 17%

Fashion retailer Next has reported a 17.9% decline in Q3 amid the continued impact of the coronavirus pandemic.

The firm said its markdown sales were 12.3% lower than last year attributing to “lower footfall” in retail stores and “capacity constraints” in the online warehouses.

Cash flow forecast increased by £25m, as a result of the £30m “acceleration” in warehouse capital expenditures.

However, Next reported that this was partially offset by its online sales continuing to be strong with a 23.1% increase in both the UK and overseas.

Financial interest income reportedly fell 13% in Q3 due to “low customer balances”, which were also down 16% from the previous year. Next said its lower balances were a result of “much lower credit sales” during the lockdown periods.

Monthly customer payments in the third quarter were reported at 14.8%, which showed a “material increase” on the same measure last year which was 12.5%.

Home and childrens-wear purchases “remained strong” while the demand for men’s and women’s formal and occasion clothing struggled.

The company said it anticipates its profit before tax to be £365m and to see its year end net debt fall £487m to £625m.

Amanda James, group finance director at Next said: “The biggest single unknown is whether England, Scotland and Northern Ireland will follow Wales’ decision to shut non-essential retail shops.

“A two week lockdown in England, Scotland and Northern Ireland in November would reduce Retail full price sales by around £57m3 (depending on timing), representing 17% of Retail full price sales and 6% of the Group’s full price sales in the quarter.”

Back to top button

Please disable your ad-blocker to continue

Ads are the primary way in which publishers generate the revenue needed to pay their staff. If we can't serve ads, we can't pay journalists to write the news.