“In the context of the wider economic environment, the year to January 2024 was a very good year for Next, and the business materially outperformed our initial expectations,” states the retail group’s chairman, Michael Roney, at the top of the year-end (27th January 2024) results published today.
Next Trading full-price sales were up +4.0%, and total group sales (including subsidiaries) up +5.9%. Store sales were up +0.2% YoY, and LFL full-price sales up +1.8% (online full-price sales were up +6.0% YoY).
Across the group, PBT rose to a record high of £918m, up +5.0%. Cash flow remained strong, and £425m was returned to shareholders through a combination of dividends (£248m) and share buybacks (£177m).
“In the last year we have focused on improving our product ranges, improving our online service levels, managing costs and profitability, whilst also laying the foundations for future growth businesses,” Michael continues.
“We launched three new Total Platform clients (JoJo Maman Bébé, Joules and Made), taking our total number of clients to seven.”
As well as launching the new Made website, Next opened a dedicated showroom in Leeds (Redbrick Mill) as well as dedicated retail space in its Sheffield store. In the year ahead, Next is planning to expand its product ranges with “a focus on furniture and lighting”.
The year ahead will see a number of changes to Next’s board. FD Amanda James plans to retire in July, and will be succeeded by Jonathan Blanchard (ex-Reiss CFO and COO) on the board.
Amy Stirling and Venetia Butterfield will join the board as independent non-executive directors in April, while non-executive director Dame Dianne Thompson will leave the board in May.
For the coming year, Next forecasts underlying full-price sales growth of +2.5%, and an increase in total group sales of +6.0%. Group profit guidance is £960m (up +4.6%).
While Next will continue to open and close a small number of stores this year, it says it does not anticipate any material net change in retail selling space.
Higher freight costs have been factored into Next’s prices going forward due to ongoing disruption in the Red Sea, but the retailer anticipates that prices will fall in the longer term.
