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Highlights
- Retail major Next’s expects supply chain issues, lorry driver shortages to affect its growth for the rest of FY 2021.
- The group’s full-price sales in the thirteen weeks to 30 October were up by 17.0 per cent on a like for like basis from two years before
- Next has maintained its Q4 sales guidance at 10.2 per cent.
UK based multinational retail major Next PLC’s (LON:NXT) shares dropped on Wednesday after the group stated the ongoing supply chain issue in the UK and HGV driver shortage would affect its growth.
Next PLC’s (LON: NXT) share price performance
Next’s shares closed at GBX 8,036.00, down by 3.32 per cent on 3 November, while the FTSE 100 index closed at 7,248.89, down by 0.36 per cent.
(Image source: EODHD/Others)
The company’s market cap stands at £11,050.74 million, and its one-year return is at 38.79 per cent as of Wednesday.
Next’s latest trading statement
In its latest trading statement, the group reported its full-price sales in the thirteen weeks to 30 October were up by 17.0 per cent on a comparable sales basis from two years before (in 2019/20).
The online Next UK division’s full-price sales in Q3 2021/22 was up by 21 per cent from two years ago, while the Q3 2021/22 total online business full-price sales were up by 40 per cent on comparable sales from Q3 2019/20.
Meanwhile, the total online sales for the year-to-date period ending on 30 October was up by 49.5 per cent on a comparable sales basis from two years ago.
Next’s Q4 and full-year 2021/2022 guidance
The company added that it is maintaining its Q4 2021/22 full-price sales forecast at 10.2 per cent and does not expect its sales to remain at its Q3 levels. It also forecasts its FY 2021/22 full-price sales to grow by 11 per cent.
The muted forecasted sales growth is due to an expected and continuing fall in pent up demand, supply chain challenges impacting stock availability and driver shortages.
The company also estimates its profit before tax to be at about £800 million in Q4 2021/22. The group plans to make a sales update for the festive period ending on 25 December, on 6 January next year.
