High street clothing giant Next has said strong online growth had compensated for a faster decline in sales through its shops.
Next said revenues in its 520 stores fell by 3.3% in the three months to October 29, compared with a 1.8% fall in the previous six months. The latest figures also included a 3.4% boost from new store openings.
The group performance was lifted by its catalogue and online business, Next Directory, which saw sales growth of 16.9% in the quarter, from 15.1% in the first half.
The group, which said earlier in the year it had been hit by a perfect storm of rising commodity prices and higher VAT, added it is confident there will be no further increase in selling prices in the first half of next year.
Next said profits are forecast to be between £550m and £585m, compared with £551m last year.
Chief executive, Lord Wolfson, said the mood of consumers remained subdued, with people being especially cautious over splashing out on big ticket items such as electrical items and furniture.
The clothing side had been less affected, he said.
The online business was boosted by strong growth overseas, he added.
Freddie George, an analyst at Seymour Pierce, said the performance from the Directory was "knockout" and more than made up for the 6.7% like-for-like decline in the shops. While Lord Wolfson described the current retail market as "not comfortable", he does not expect the Chancellor to give any special boost to consumer spending in this month's autumn statement.
Next expects sales for the full year to rise by between 2.5% to 4%, compared to the broader guidance of 2% to 4.5% it issued in September.
Read more: http://www.belfasttelegraph.co.uk/business/business-news/nexts-knockout-online-sales-soften-stores-blow-16072448.html#ixzz1cevIwh6P
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