- Next has increased its full-year pretax profit forecast to GBP995 million, up from a previous forecast of GBP980 million.
- The company now expects full-price sales to grow by 4%, higher than the earlier estimate of 3.4%.
- For the first half of the year:
- Total group sales reached GBP2.95 billion, an 8% increase year-over-year, surpassing the estimate of GBP2.76 billion.
- Online total sales were GBP1.60 billion, up 7% year-over-year, but slightly below the estimate of GBP1.62 billion.
- Retail total sales were GBP867 million, a 2% decrease year-over-year, but above the estimate of GBP863.3 million.
- Finance total sales were GBP150 million, up 4.8% year-over-year, outperforming the estimate of GBP148.3 million.
- Online operating profit was GBP265.1 million, up 8% year-over-year, but below the estimate of GBP270.3 million.
- Retail operating profit was GBP97.8 million, a 3.4% decline year-over-year, yet above the estimate of GBP88.8 million.
- Finance division operating profit surged by 20% year-over-year to GBP96.6 million.
- Overall operating profit was GBP475.7 million, a 5.1% increase year-over-year, but below the estimate of GBP488.3 million.
- Pretax profit stood at GBP452 million, reflecting a 7.1% increase year-over-year and matching the estimate of GBP452 million.
- Profit after tax was GBP341 million, up 5.2% year-over-year.
- The company noted that full-price sales over the first six weeks of the second half have exceeded expectations.
- Market sentiment: 5 buys, 15 holds, 1 sell.
A look at Next PLC Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Next PLC, a retail company engaged in selling clothing and housewares, shows a mixed outlook based on the Smartkarma Smart Scores. While the company demonstrates strong momentum with a score of 5, indicating a positive trend in its performance, other areas like value and resilience are rated lower at 2. This suggests that Next PLC may not be currently undervalued, and could face challenges in maintaining stability during economic fluctuations. However, the company’s growth score of 4 signifies promising potential for expansion, and a dividend score of 3 indicates a moderate but steady income for investors.
In summary, Next PLC‘s overall outlook, as assessed by Smartkarma Smart Scores, leans towards positive growth and momentum in the long term. With a focus on boosting resilience and enhancing its value proposition, the company could further solidify its position in the retail sector. Investors may find Next PLC an attractive option for potential growth opportunities, backed by its strong growth and momentum ratings.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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