Retailer Next has reported an 18% hike in profits after seeing a turnaround in sales following four years of declines. The group posted pre-tax profits of £505 million in the 12 months to January, up on the £428.8 million seen a year earlier. Next thanked better-than-feared consumer spending and efforts to improve product ranges for the improvement, as like-for-like sales returned to positive territory with a 0.5% rise.
But chief executive Simon Wolfson joined fellow retailers in expressing concern over 2010, saying the group is “extremely cautious” on the sales outlook.Mr Wolfson said 2010 is “hard to predict” ahead of the general election and potential for tax rises as the Government seeks to bring down national debt.
The fashion and homewares chain is budgeting for same store sales ranging from 2.5% down to 0.5% up in the first six months, but stressed it hopes to be able to grow profits by around £30 million even if annual sales fall 2%. ….Licensing activity looks like it is fairly strong there too……Please do send us any success stories…