Next Plc, a British multinational clothing retailer, expects full price sales growth of +3.2 per cent and full year profit of £723 mn for the current year. Profit of the company may increase or decrease by up to £5 mn depending on sales and costs in January. For the year 2020, the company expects full price sales growth to be +1.7 per cent.
There is a high degree of uncertainty in the Next Plc’s sales forecast made this year around the performance of the UK economy after BREXIT. The company has lowered the central guidance for full year profit for the current year from £727 mn to £723 mn, a difference of 0.6 per cent, said in a report from Next Plc. The £4 mn difference is a result of two factors. Firstly, higher sales on seasonal products, such as personalised gifts and beauty products reduced the margin by £1.5 mn. The remaining £2.5 mn reduction came as a result of the increased operational costs associated with the higher online sales.