| Next reports drop in sales |
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| Monday, 12 May 2008 | |
 High street and catalogue retailer Next last week reported a 9 per cent drop in sales. Next's shares surged to a two-month high on relief that the figures were not worse. In May last year shares were GBP24.24, but they fell to GBP10.73 two weeks ago. On Thursday they closed at GBP13.02.
In it's 1ast quarter results the 500-store chain said total sales from its high street outlets and mail-order business were down 3.9 per cent on the same period last year. Like-for-like sales for Britain's third biggest retailer have been unaffected by new openings, regarded as the best measure of the underlaying business - were down 8.9 per cent, said the Guardian.
Wolfson last week said Next could see a downturn between 4 and 7 per cent for the first half. He further stated the chain was plotting ahead with plans to open a further 35,000 sq meters of retail space this year - taking its total to 520,000 sq metres - and expected to produce profits "closely in line" with City forecasts of approximately GBP500. The clothing sector in general has had a grim start to the year. In April the Office for National Statistics showed sales of clothing and footwear falling for the first time since December 1998. Sluggish clothing sales have been hitting all price points: including Gucci and Tesco, the latter reported it missed clothing sales targets. Wolson said childresnwear was proving most resilient, while menswear had been worst hit. He said the figures "proved we were right to be cautious and we continue to be cautious." Next expects the first quarter to the be the worst of the year, according to the Guardian. Images: Next Summer 08 |
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Simon Wolfson, Next's chief executive, stated recent trading conditions, with bumper weeks followed by days of dire trading, were the most difficult he had ever witnessed in his retail career: "The ups and downs are bigger than I have ever seen."
