Next profits down 8% in hardest year in 25 years

Clothing retailer Next has seen its most challenging year in 25 years, according to its chief executive Lord Wolfson. In its results to the end of Janaury 2018, the retailer said its retail sales were down 7.9% to £2.1bn, while online sales were up 9.2% to £1.9bn.   Overall group sales were down 0.5% to £4.1bn and profit before tax was down 8.1% to £726.1m. Wolfson said “In many ways 2017 was the most challenging year we have faced for 25 years. A difficult clothing market coincided with self-inflicted product ranging errors and omissions.   “At the same time, the business has had to manage the costs, systems requirements and opportunities of an accelerating structural shift in spending from retail stores to online. In the end our profits were in line with the forecast we issued in January 2017 and the Company goes into the coming year in good financial health.” In the period it opened seven new stores and closed 17. During 2018 it plans to increase trading space by 100,000 sq ft. To send feedback, e-mail alex.peace@egi.co.uk or tweet @egalexpeace or @estatesgazette