Clothing retailer Next said this morning that its Directory business has seen another growth surge after demand over the Christmas period soared.
Sales at the online and catalogue business increased 21 per cent in the eight week period from November 1 to December 24. Sales at stores grew 7.7 per cent taking the total increase in revenue to 11.9 per cent.
Next said: 'Sales in the fourth quarter have been significantly ahead of our expectations. The step-up in Christmas trade was mainly down to improvements in our seasonal knitwear, nightwear and gift offer. In addition, increased confidence in online deliveries meant that more customers continued to trade with Next Directory right up to the weekend before Christmas.'
It said the success during the fourth quarter so far meant it had raised its guidance for full-year profit to around £692 million, an increase of about 11 per cent on last year.
Next also plans to pay a one-off 50 pence a share dividend with extra cash it has made this year.
'As far as the consumer environment is concerned, it seems likely that the economy will continue to steadily improve with strong employment numbers driving a general recovery,' the company said.
But it warned: 'However, the problem of little or no growth in real earnings looks set to persist for some time, and we cannot see any reason to expect a significant increase in total consumer spending in the year ahead. We are also wary that any return to significant economic growth is likely to result in rising interest rates which, in turn, is likely to moderate spending of those with mortgages.'
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