Next has issued a trading statement covering the quarter from 26th October to 24th December, highlighting that full price sales were up just 0.4% in the period – a "disappointing performance … mainly down to the unusually warm weather in November and December". Next did not discount stock at any time before its End of Season Sale, so gross margins were maintained. Stock for the End of Season Sale was -7% lower than last year, and clearance rates were broadly in line with last year.
Next Directory’s disappointing sales were reportedly compounded by poor stock availability from October onwards, and the increasingly competitive nature of the online environment.
Full price sales for the year to date are currently 3.7% ahead of last year. However, good control of margins, costs and stock, along with healthy clearance rates, means that Next expects profits for the full year to remain in line with guidance issued in October.
