- Revival in demand for formal and occasionwear boosts gross sales
- Full-price gross sales up 20% on two-year foundation
- Raises 2021-22 revenue forecast to 822 mln stg
- Forecasts revenue of 860 mln stg for 2022-23
LONDON, Jan 6 (Reuters) – British vogue retailer Subsequent raised its full-year revenue outlook for a fifth time in 10 months after beating steering for gross sales within the run-up to Christmas, boosted by an surprising revival in demand for grownup formal and occasionwear.
As the primary main UK retailer to replace on Christmas buying and selling, Subsequent set a excessive bar on Thursday for rivals because it reported a 20% rise in full-price gross sales within the eight weeks to Dec. 25 versus the identical interval in 2019 earlier than the pandemic started.
Steering had been for an increase of 10.2%.
Subsequent did, nonetheless, warning that pressures on shoppers’ funds, corresponding to greater meals costs, power prices, mortgage charges and taxes, pointed to a harder buying and selling atmosphere in 2022.
It additionally flagged that its personal costs would rise 3.7% within the first half of 2022 and 6% within the second half attributable to greater freight charges and elevated manufacturing prices.
Shares within the group had been down 1.4% at 1018 GMT, paring year-on-year positive factors to five%.
Subsequent, which trades from about 500 shops and on-line, had anticipated gross sales development in its fourth quarter to be weaker than the third.
Nevertheless, it stated a robust revival in NEXT branded grownup formal and occasionwear considerably improved gross sales all through the interval.
That was regardless of decrease than deliberate inventory ranges attributable to provide chain points and a few degradation in supply service ranges attributable to labour shortfalls in warehousing and distribution.
It forecast a full-year 2021-22 pre-tax revenue of 822 million kilos ($1.1 billion) up from the 800 million kilos beforehand guided and up 9.8% versus 2019-20.
Subsequent has proved a resilient performer throughout the pandemic, benefiting from its long-established on-line operations.
Rivals with weaker or no on-line enterprise, notably Primark , have seen massive falls in gross sales. Others, corresponding to Topshop-owner Arcadia, and Debenhams went bust.
Subsequent’s complete on-line gross sales rose 45% within the eight week interval, greater than offsetting a 5.4% fall in UK and Eire retailer gross sales.
For the 12 months ending January 2023, Subsequent forecast full worth gross sales development of seven% versus the present 12 months ending January 2022, with pre-tax revenue up 4.6% at 860 million kilos.
Subsequent additionally declared an additional particular dividend of 160 pence per share, price 205 million kilos, to be paid on the finish of January and stated it intends to return to its pre-pandemic dividend cycle within the 2022-23 12 months.
($1 = 0.7400 kilos)
Reporting by James Davey; modifying by Kate Holton, Jason Neely and Emelia Sithole-Matarise