Dear Kizzi,
Fashion giant Next announced a rise in online sales, compensating for the losses from its high street stores during November and December mainly on the back of childrenswear, loungewear and sportswear as lockdowns and Covid restrictions continued across the country. Online customers were up by around 24% compared to last year, sales increased 36% in Q4 to December 26th while shop sales fell 43%.
Investor’s will be glad to see the profits for 2020 came above expectations at £370m (versus the £365m expected) and Next´s overseas sales, part of their digital business were up 38%.
Going forward, investor´s will have to main things in mind. Firstly, the potential hit the company will take due to the new lockdown closure – where the company is foreseeing a 14% loss of full-price retail sales. And secondly, how much will it actually cost Next to clear its retail-end of season sale stock online, considering the positive sale season on the hight street won’t be happening this year.
Neil Shah, Director of Research at Edison Group
