Connect with us

Hi, what are you looking for?

Investing

Next to repay £29m in Covid rates relief amid strong revenue growth

Next has reported strong revenue growth as shoppers returned to its clothing stores after the Covid-19 lockdown reopening and as a result has decided to repay £29m of business rates relief to the government.

Shares in the bellwether retail chain soared 10% in early trading on Wednesday, making Next the biggest FTSE 100 riser as investors responded positively to the news that it was raising its profit forecast for the third time in four months.

The clothing and homeware retailer’s full-price sales over the past 11 weeks, between early May and 17 July, were almost 19% higher than during the same period two years earlier, before the pandemic. The company had previously forecast a 3% increase.

The latest profit increase – after upgrades in April and May – means Next is now expecting to make £750m of pre-tax profit this year, £30m more than at its last forecast in May.

The new profit forecast is after a deduction of £29m in business rates relief, which Next is repaying to the government, covering the period this year when its shops were open but were not charged rates.

Next has emerged as a big winner from the pandemic and experienced increased demand for products such as clothing since its stores in all four nations of the UK were allowed to reopen during April.

The company has been surprised by its levels of sales, ever since the easing of coronavirus restrictions unleashed pent-up demand for adults’ summer clothing. Next said many shoppers did not buy many clothes last summer, which meant it got a boost from the warm weather at the end of May and the start of June this year.

The retailer believes the reduction in foreign holidays taken by Britons this year has bolstered domestic spending, while consumers also have extra cash in their pocket after saving money during the pandemic.

Next’s online sales jumped by 63% in the first quarter of the year, making it the UK’s biggest internet clothing retailer – ahead of rivals such as Asos and Boohoo. Its online sales have come down in recent weeks, with shoppers flocking back to its reopened stores instead.

The retailer does not expect its sales to continue at what it called “these exceptionally strong levels” but it has also upped its sales guidance for the second half of the year from 3% to a 6% increase.

Its soaring sales have also prompted Next to restart shareholder payouts after a pause in 2020. It will pay a special dividend to its shareholders in September and said it expects to distribute £240m to investors during the current financial year.

Read more:
Next to repay £29m in Covid rates relief amid strong revenue growth

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

Another Olympic gold medal for the Philippines is within reach after featherweight boxer Nesthy A. Petecio secured a spot in the finals at the...

Economy

Filipino flyweight boxer Carlo Paalam advanced to the quarterfinals of the flyweight division in the Tokyo Olympic Games after he defeated Mohamed Flissi of...

Economy

Filipino pole vaulter Ernest John Obiena advanced to the final round of the men’s event in the Tokyo Olympic Games after finishing among the...

Economy

Manila and nearby cities would go back to the strictest lockdown level from Aug. 6 to 20 amid a fresh surge in coronavirus infections...

Economy

The Philippine central bank will keep a supportive monetary policy amid a slower-than-anticipated economic recovery, its governor said on Friday.  “High-frequency indicators suggest that...

Economy

The Philippine central bank raised P100 billion on Friday as it fully awarded its short-term securities, with yields rising due to concerns about a...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Economy

THE Securities and Exchange Commission (SEC) has warned the public from investing or to stop any investment in a group named Maxxprofit Computer Trading...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!