The second-largest clothing retailer in the U.K. – Next Plc posted a 12% higher pretax full-year profit for 2013. The results are at top end of the companys estimates. Next Plc also shared that it managed to generate more money than Marks & Spencer Group Plc for the first time in its history and forecast another big profit jump in 2014.
The Chief Executive Officer of the company – Lord Wolfson shared that he considers Nexts “bravery” in trying out new fashion trends as the main reason for the companys success.
He said for the Financial Times: “This approach of taking greater fashion risks may sound counter-intuitive but, in today’s fast moving fashion environment, to fall back on ‘safe’ historical ranges would merely guarantee failure. On the whole, our experience is that where we have been braver in buying into new trends, we have been successful.”
Next Plc, which owns more than 500 stores in the U.K. and Ireland and about 200 more worldwide, made an official statement, announcing that its pretax full-year profit reached 695.2 million pounds (1.1 billion dollars) for the year that ended in January 2014. The pretax profit forecast of the company ranged between 684 and 700 million pounds. Next Plc projected a 2014 pretax profit of between 730 and 770 million pounds.
The Chairman of the company – Mr. John Barton said in the statement, which was cited by Bloomberg: “Our strategy remains the same, focused on our products, our profitability and returning cash to our shareholders. Nothwithstanding the continued pressure on the U.K. consumer, we anticipate another year of growth for Next.” As reported by the Financial Times, Mr. Barton also said: “The year to January 2014 was a great year for Next.”
The companys revenue for 2013 was reported to have increased from 3.55 to 3.74 billion pounds, and its net profit jumped from 473.2 to 553.2 million pounds. The sales of Next Plcs online and catalogue business – Next Directory rose by 12.4% and the Retail unit of the company grew by 1.7%.
Next Plc rose by 1.52% by 9:45 GMT in London to 6 683 pence, marking a one-year change of +62.39%. The company is valued at 10.2 billion pounds. According to the Financial Times, the 22 analysts offering 12-month price targets for Next Plc have a median target of 6 186 pence, with a high estimate of 7 500 pence and a low estimate of 4 000 pence. The median estimate represents a -5.99% decrease from previous close of 6 580 pence.
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