Sales at Next drop 3% for first quarter
Published: 4 May 2017 - Jenny Wonnacott
Next has released results for the 13 weeks to April 29, with full price sales down 3% and total sales including markdowns down by 2.5%.
Next warned of a challenging retail market as it released results for its first quarter
Store sales fell by around 8%, though Directory sales rose 3.3%. The retailer has now adjusetd its profit forecast to between £680m - £740m. Its earlier forecast stood at £680m - £780m.
The homewares market was pinpointed as being particularly challenging by the retailer, which also saw its clothing sales hit. The retailer is expecting improvement from May onwards, but said that “our ranges [will] not be where we [want] them to be until the Autumn season.”
The retailer added that “real wage growth is now close to zero.”
Cash flow is expected to generate £225m of surplus cash after deducting interest, tax, capital expenditure and ordinary dividends in the current year.