Next has reported a sharp rise in online sales over the Christmas period, trading at its stores has declined.
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The retailer said strong sales during the three weeks before Christmas and the October half-term holiday had made up for their disappointing November sales. Online sales rose by 15.2% between October 28 and December 29 from the year before on the other hand, store sales fell 9.2% this year. As a grand total the retailer were up by 1.5% over the festive period.
Next expects an annual profit of £723 million, this will be slightly lower than the previous profit £727 million. For the lower profit they are blaming strong sales on profitable items such as beauty products and personalised gifts. It is said that although in store sales are low they are a big contribution to the stores profit as sales items are normally found and bought in store.
The company said it was particularly difficult to forecast how its business would perform this year due to UK leaving the European Union.
Next chief executive Lord Wolfson said “People are maybe a little bit more cautious, given the uncertainties around Brexit. But I think that’s as strong as you can put it,”
Next shares rose more than 6% after its trading statement which follows the near 20% fall in December when investors were warned by the profit warning from online retailer ASOS.
The results for Next performance come after rival retailer John Lewis Partnership reveals their 11% rise in sales compared with the previous years. Debenhams and Marks and Spencer are yet to release their trading results.
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