Interim Management Statement

RNS Number : 5092V

Next PLC

03 November 2010

 



Date:	Embargoed until 07.00hrs, Wednesday 3 November 2010
Contacts:	Lord Wolfson, Chief Executive
	David Keens, Group Finance Director
	NEXT PLC
	Tel:  [phone]
	Alistair Mackinnon-Musson
	Nathan Field
	Hudson Sandler
	Tel:      [phone]
	Email:  [e-mail]
Photographs:	Photographs available at:  http://www.next.co.uk/press/corporate.asp

Next Plc

Interim Management Statement

Sales Performance

Sales for the Next Brand in the third quarter to 30 October 2010 were up 2.2% and towards the upper end of our guidance range of 0% to +3%.   A strong performance from our online business, Next Directory, and the continued addition of profitable new retail space more than made up for Next Retail like for likes which were just below the midpoint of our guidance.  

The table below sets out our third quarter actual performance and confirms the second half guidance given in September for the comparable 26 week period. 

Sales (VAT exc)	Q3 Actual Performance	September H2 Guidance
Total Brand	+2.2%	0.0% to +3.0%
Total Retail	- 0.3%	- 1.5% to +1.5%
Retail like for like	- 3.3%	- 4.5% to - 1.5%
Directory	+7.9%	+4.0% to +8.0%

Outlook for Current Year to January 2011

We maintain our Brand sales guidance range of 0% to +3%, albeit that the fourth quarter presents tougher comparatives than the third and we may not maintain the current position at the upper end of the range.   Product margins and operating costs remain well controlled and in line with our internal budgets.  The outlook for Group profit before tax remains unchanged and in line with our September guidance and current market expectations.  Accordingly we reiterate our profit range of £535m to £560m.  Earnings per share would be in the range 214p to 224p, an increase of between 14% and 19% on last year.

Outlook for 2011 Prices

As a result of further rises in the price of cotton, retail price rises are likely to be at the top end of our previously stated 5% to 8% range for the first quarter of next year.  The longevity of what appears to be a speculative bubble in cotton prices will be critical in determining prices for the second quarter.

Christmas Trading Statement

We intend to issue a sales update for the period to 24 December 2010 on or around Wednesday 5 January 2011.

- ENDS -

 

END

 

 

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