The profit from a pandemic is expected to be significantly bigger in the future, according to Next.
Thanks to robust online sales and the reopening of its stores, NEXT has upped its full-year estimates after disclosing that its first-half profits have surpassed pre-pandemic levels.
After a £16.5 million loss last year and a £327.4 million profit in 2019, the high street staple made a pre-tax profit of £346.7 million in the six months to the end of July. Revenues were £2.1 billion, increasing 59 percent from the previous year and 5.2 percent higher than before the Covid outbreak.
As a result, Lord Wolfson, the retailer’s chief executive, forecasts full-year profits of roughly £800 million, up £36 million from its July prediction.
He did say, though, that growth is likely to decelerate. “The last six months have been far better than projected, and this trend has persisted into August and September,” he said.
“The bad news is that the lift we got from pent-up demand, record savings ratios, and people taking fewer international vacations is starting to fade.”
He predicted that increasing shipping costs will force buyers to pay more, with homeware prices likely to rise by 6%.
Investors in Mike Ashley’s Frasers empire staged a pay revolt at the annual meeting, with 13.7 percent voting against the company’s remuneration report.
In addition, after selling off portions of its business, apparel retailer Quiz has returned to profitability with a full-year pre-tax profit of £6 million, compared to a £29.4 million loss the previous year.