LONDON, UK: NEXT Group has announced its financial results for the year ending January 2024, showcasing a steadfast increase in sales and profits despite challenging market conditions.
The retail giant reported total group sales of £5,842 million, marking a 5.9% increase from the previous year’s £5,516 million. This growth is attributed to the company’s strategic focus on full-price sales, which saw a 4.0% uptick, and a total group sales surge of 5.9%, including subsidiaries.
NEXT Group’s profit before tax, excluding brand amortisation, stood at £918 million, a 5.0% increase from £875 million in the prior year. This figure surpasses the January guidance by £3 million, primarily due to better-than-expected clearance rates of sale stock. The company’s statutory profit before tax also saw a significant jump of 16.9%, reaching £1,016 million.
However, the group’s profit after tax experienced a slight decline of 2.0%, settling at £702 million compared to £716 million in the previous year. Despite this, NEXT Group’s post-tax earnings per share (EPS) edged up by 0.3%, from 576.8p to 578.8p.
In a strategic shift, NEXT Group has decided to report headline profit figures excluding the amortisation of acquired brands, a move that more accurately reflects the underlying profitability of the group. This change is reflected in the reported figures, with prior year numbers restated accordingly.
Looking ahead, NEXT Group remains optimistic, providing guidance for an underlying full-price sales growth of 2.5% and a total group sales increase of 6.0%. The group’s profit is projected to rise to £960 million, up by 4.6%, with a forecasted post-tax EPS of 606.3p, reflecting a 4.8% increase.
The company’s financial fortitude was further bolstered by an exceptional non-cash gain of £109 million from the acquisition of Reiss, although this has been excluded from the headline profit number to maintain focus on operational performance.
As NEXT Group continues to navigate the retail landscape with agility and foresight, stakeholders can take comfort in the company’s robust growth trajectory and clear strategic direction for the year ahead.
The Board has recommended a final ordinary dividend for the year ended 27 January 2024 of 141p per share. If approved, it will be paid on 1 August 2024 to shareholders who are on the register of members at 5 July 2024, taking the total ordinary dividends for the year to 207p per share. This is subject to approval by shareholders at the Annual General Meeting to be held on 16 May 2024. Shares will trade ex-dividend from 4 July 2024.
The chairman, Michael Roney, credits the company’s success to the hard work and dedication of NEXT’s employees and looks forward to tackling the challenges and opportunities of 2024.
He said, “The company focused on enhancing product ranges, online services, cost management, and profitability, while also investing in future growth. This included launching three new Total Platform clients, increasing the total to seven, and making strategic investments in Reiss and FatFace, as well as acquiring Cath Kidston’s intellectual property.
The upcoming year will bring changes to NEXT’s Board. Amanda James, the Finance Director, will retire after 28 years with the company. Jonathan Blanchard will succeed her, bringing extensive retail experience and financial acumen from his time at Reiss Group. Dame Dianne Thompson will depart from the Board, and Amy Stirling and Venetia Butterfield will join as independent non-executive directors”.
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