Jan 5, 2021

Next expects profits to recover quickly after pandemic hit

Fashion retailer Next said it expects profits in the coming financial year to recover to almost pre-pandemic levels, even if its stores remain closed for two months and stock deliveries are disrupted. The company said that its central guidance was for pre-tax profit of £670m for the year to January 2022. In its current financial year, the company now expects a pre-tax profit of £370m before an increased provision against the value of its retail store estate and the benefit of an additional trading week, up slightly from the £365m predicted at its last update in October. The closure of stores through the last month of its financial year will result in £18m of lost profit and £5m of additional costs in clearing unsold stock. The company has benefited from its well-developed online offering, which accounted for over half of group sales even before the pandemic.

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