Reporting full year results today, NEXT plc (LON:NXT) (OTCMKTS:NXGPY) revealed that it had remained profitable throughout the pandemic, driven by the strength of its online offering.
- Profits of £42m were reported from sales down 17% to £3.6bn.
- The group will not pay a final dividend but expect to be able to resume payments to shareholders later in the year.
- The group sees profits recovering to pre-pandemic levels during the current year, assuming no further returns to lockdowns in the UK. The shares jumped 300p to 8166p in reaction to the numbers.
NEXT Is A Remarkable Business
Commenting on the figures Steve Clayton fund manager of the Hargreaves Lansdown Select funds, which hold NEXT plc shares said:
“Profits may have more than halved, but to be reporting any sort of profit at all as a fashion retailer after a year like 2020 is a remarkable achievement. But NEXT is a remarkable business. The group saw the potential of online retailing years before their rivals took it seriously. As a result Next was earning most of its money online, even before the pandemic struck. That has left it in a far stronger position than rivals like M&S (loss-making), or Arcadia and Debenhams (both now bankrupt). When NEXT does reopen their doors they will be perhaps the strongest of the survivors and Britons have saved up a lot of spending money during lockdown. We see NEXT as incredibly well positioned to generate profit and cash in the years ahead”.
About Hargreaves Lansdown
1.5 million investors trust us with £120.6 billion (as at 31 December 2020), making us the UK’s largest direct-to-investor service.
For more information: www.hl.co.uk/about-us