Next holds guidance as annual profits rise 5%

(Sharecast News) - UK fashion retailer Next held guidance for 2024 after posting a better-than-expected 5% rise in annual profits to £918m. The company said it still expected pre-tax earnings of £960m, based on a 2.5% increase in full price sales. Total sales for the year to January 2024 rose 6% to £5.8bn.

"Our outlook for 2024/25 has changed little since our January Trading Statement. On the face of it, the consumer environment looks more benign than it has for a number of years, albeit there are some significant uncertainties," the company said on Thursday.

Next added that it did not expect any material adverse impact from stock delays due to attacks on shipping in the Red Sea by Houthi militants backed by Iran that have forced firms to avoid using the Suez Canal.

"On average, transit times have been extended by 7-10 days and our product teams have adjusted the timing of their contract bookings to account for this delay. In addition, higher freight costs have been factored into our prices going forward but we still anticipate that our prices will fall."

Reporting by Frank Prenesti for Sharecast.com