• JOIN US
  • SIGN IN
  • ADVISERS
  • ABOUT
  • OUR TEAM

The Industry

  • HOME
  • NEWS & INSIGHT
    • BUSINESS
    • CSR & Sustainability
    • RETAIL & ETAIL
    • Start-ups & Innovation
    • TECH & MEDIA
  • FASHION
    • TRENDS
    • BRANDS & DESIGNERS
  • MEMBERS
    • JOIN US
    • IND-DIRECTORY
  • EVENTS
    • SAVE THE DATE
    • IND-TV
  • PEOPLE
    • MOVES
    • EXPERTS
    • INTERVIEWS

Posted In Business, News & Insight, Retail & Etail

Next posts first drop in profits for eight years, warns of price rises

Lauretta Roberts | 23rd March 2017

 0

High street giant Next has, as anticipated, posted its first drop in profits since the financial crisis eight years ago and has warned of higher prices for consumers on the back of sterling’s slide in value as a result of the Brexit vote.

Profit before tax for the 52 weeks to the end of January 2017 was down 3.8% at £790.2m on total sales that were broadly flat at £4,136.8m.

Once again Next Retail sales took a hit and were down 2.9% while Directory was up 4.2% which the group said was a reflection of the consumer’s migration to online shopping, better stock availability, improved site functionality and a growth in its LABEL multibrand business. Overall full-price sales were down 4.6%.

Next admitted that it had experienced issues with its product. The business has been changing its buying practices to allow it to better respond to trends and restock fast-selling items but said that while this practice had been successful it had meant the business had omitted to stock some of its core bestselling items.

“These are the easy to wear styles that can be delivered in large volumes and great prices across several colours,” the group said in a statement and said corrective action was underway to ensure the product range was more balanced moving forward.

Customers, however, can expect higher prices. As the business had previously flagged selling prices for the spring collection are up 4% due to the slump in sterling following the Brexit vote, which has pushed up retailers’ costs. It has warned that pressure on prices remains an issue and prices are likely to rise by a similar amount this autumn.

Should sterling stabilise pricing pressure should ease next year, its statement said. “The inflation in our cost prices and the wider economy looks like it has been driven mainly by the devaluation of the pound. In the event that devaluation is a one off adjustment and sterling does not devalue again in 2018, pricing pressure should ease as we go into the second half of 2018. By the same logic, the pressure on real wages from rising inflation may also work its way through the system by the middle of 2018,” it said.

Share on Facebook
Facebook
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin
Pin on Pinterest
Pinterest
Tags / Brexit, High street, Lord Simon Wolfson, Next, Retail

About Author / Lauretta Roberts

Lauretta Roberts is managing director and Editor-in-Chief of The Industry, having acquired the business along with business partner Antony Hawman in July 2015. She is also the former director of brand & propositions of trend forecaster WGSN and a former editor of Drapers magazine.

You Might Also Like

Zimmermann

Zimmermann’s first European store opens in London

3rd August 2017
Sir Philip Green

Is Sir Philip Green set to sell off his fashion empire?

18th February 2018
WAH

WAH NAILS to open “salon of the future” in Soho

17th November 2016
Previous Post
Next Post

Our FREE Newsletter

Trending on The Industry

  • Victoria Beckham
    Victoria Beckham comes out on top for social media value during London Fashion Week
  • Jo Jo Maman Bebe
    Strong growth continues at Jo Jo Maman Bebe
  • Belstaff
    In Pictures: Belstaff unveils new retail concept at Spitalfields
  • Influencer marketing
    In The Know: Anna Shearer, Influencer and founder Le Fashion Fetish
  • High street
    MPs urge government to consider online sales tax to boost high street

Connect with us

THEINDUSTRYFASH TWEETS

Premium maternity wear and childrenswear retailer Jo Jo Maman Bebe continues on a strong growth trajectory with sales up 17.6% #ukretail #retailnews #fashionretail https://t.co/aQZilo8r10

Reply on TwitterRetweet on TwitterLike on Twitter
Retweet on TwitterTheIndustry.fashion Retweeted

We've rounded up some key points from @theindustryfash's Supercharge Your Sales Via Social Media Masterclass by @thefashiondigi's @natalie_hughes! Want to know how to use social media to build brand awareness, drive engagement & propel sales? Find out now: https://t.co/a4pLTbJ56i

Reply on TwitterRetweet on Twitter2Like on Twitter1
Load More...

Find us on Facebook

ON INSTAGRAM @THEINDUSTRYFASHION

  • New asos GenZ label COLLUSION smashes sales targets  Read
    22 hours ago by theindustryfashion New  @asos  Gen-Z label COLLUSION smashes sales targets . Read more at TheIndustry.fashion . . .  #collusion   #fastfashion   #everyonetogether 
  • Students vote asos the best brand at engaging with their
    2 days ago by theindustryfashion Students vote  @asos  the best brand at engaging with their community . Read more at TheIndustry.fashion . . . .  #retailnews   #socialmedia   #digitalmarketing 
  • In The Know Anna Shearer Influencer and founder lefashionfetish
    16 hours ago by theindustryfashion In The Know: Anna Shearer, Influencer and founder  @lefashionfetish  . Read our interview at TheIndustry.fashion . . . .  #influencer   #fashionbusiness   #digitalmarketing 
  • Dont miss your chance to hear the story of one
    15 hours ago by theindustryfashion Don’t miss your chance to hear the story of one of the brightest entrepreneurs in fashion in an intimate and exclusive setting, as well as the chance to network with peers over Champagne in the beautiful Perception Bar of W London. . Book your ticket now for £45+VAT at TheIndustry.fashion . . . .  #businessnetworking   #fashionevents   #entrepreneurevents   @threadformen 
  • chanelofficial pays tribute to Lagerfeld and names Viard as his
    2 days ago by theindustryfashion  @chanelofficial  pays tribute to Lagerfeld and names Viard as his successor . Read more at TheIndustry.fashion . . . .  #karl   #icon   #chanel   #fashionupdates   #fashionnews 

Connect with The Industry

About Us

About
Join us
Events

CONTACT US

Contact
Our team

Tags

#WattsWhat Advertising Asos Boohoo Brexit British Fashion Council Burberry Caroline Rush Catwalks Collaborations Debenhams Department stores E-commerce ecommerce etail Farfetch Footwear GUCCI H&M High street House of Fraser John Lewis London Fashion Week Luxury Marketing Marks & Spencer media menswear Mike Ashley Next property Retail Selfridges Shopping malls social media Sports Direct Sportswear Start-ups Sustainability Technology The Industry Topshop Trends Vogue YOOX NET-A-PORTER Group

Recent Comments

  • LOVstay on Karl Lagerfeld reported to have died at the age of 85
  • Paula Renee on Victoria Beckham bans exotic skins from AW19
  • Bob Rocket on Superdry shares tank on back of profits slump

Archive

© Copyright Magnus Media & Events Ltd. 2018

7ads6x98y