Next Plc: the solid performer

The British fashion retailer Next improved their profit and revenue guidance, again. This happened many times during the last years. Next is a very solid performer in a very difficult category, fashion & home.

Despite the declining core business of selling clothes in the stores, Next has been able to keep on growing both their revenues as well as profits. Compared to pre-pandemic 2019 levels, Next revenues have grown by +13%.

In fact, Next guides last years profits as hitting the all time highs for profits with £822 million for last year. This is +9,8% compared to 2019 profit level.

Online provides already 62% of revenues for Next, up from 41% only five years ago. Since 2016 store revenues have declined by -38% whereas online revenues have increased by 69%.

Within the Next online business, it can be divided into three segments, Next own branded products sold online, the marketplace called Label (selling third party brands like Nike, Adidas…) and overseas online business. The last two have been the faster growing parts of the business and have now reached more than 50% of total online revenues.