Next, the fast-expanding retailer, recently released its third-quarter trading update, revealing impressive results that exceeded expectations. The report highlighted the company’s continued success and efficient management in the UK fashion sector. Full-price sales for the 13-week period ending on October 30 showed a significant increase of 17% compared to the same period in 2019, or 12.7% compared to the previous year. These figures include interest income, but when excluding it, total full-price product sales rose by an even higher 18.7% for the quarter and 12.8% year-to-date, compared to the pre-pandemic period.

In addition to these encouraging figures, Next experienced a remarkable growth in full-price sales of 14% in the last five weeks alone when compared to a two-year period. This surpassed the company’s forecasted 10% increase, indicating that Next is performing exceptionally well in terms of sales.

Despite these positive developments, Next maintains its guidance for Q4 full-price sales, expecting a 10% rise. The company is also anticipating a full-year pre-tax profit of £800 million, further solidifying its position as a successful player within the fashion industry.

While specific figures for discounted sales were not provided in the update, a closer analysis of the given figures reveals impressive growth in Next’s online sales. In particular, online sales of Next branded products saw a significant increase of 21% compared to two years ago, while year-to-date online sales soared by an impressive 37%. The online Label ops, which feature third-party brands, experienced even greater growth with an 86% increase in Q3 and a 73% increase year-to-date, compared to figures from two years ago. Online overseas sales also witnessed significant growth, rising by 41% in Q3 and 55% year-to-date. Consequently, total online sales were 40% higher than in Q3 2019, while year-to-date sales were an impressive 49.5% ahead.

Evidently, it is online sales that continue to drive Next’s success, while physical retail continues to decline. Within its retail division, which includes stores in the UK and Ireland, full-price sales decreased by 6.1% in Q3 and by 28.8% year-to-date, both compared to figures from two years ago. However, the fact that the quarterly decline is lower than the year-to-date decline suggests a gradual recovery in customer footfall within Next’s physical stores.

Next’s impressive Q3 results affirm its status as one of the most successful and well-managed fashion retailers in the UK. With online sales thriving and signs of recovery in physical retail, the company is well-positioned for continued growth and success in the coming months.

For more information, please visit: https://www.next.co.uk
For the full report, please visit: https://www.next.co.uk/trading-update