Next lifts profit forecast to £822m as shareholders await New Year payday
Next has told shareholders to expect a special dividend at the end of the month, after lifting its profit guidance for the full year.
The high street retailer has raised in profit before tax guidance by £22m, to £822m – up nearly 10 per cent in comparison with pre-pandemic levels.
Meanwhile, investors eye a £205m payday, with the special dividend of 160p per share. The latest payout follows a £140m bonus in early September.
It comes as full price sales were up 20 per cent in the eight weeks leading up to Christmas. The successful festive trading period pulled in around £70m more than originally anticipated.
Despite no restrictions on the brick and mortar shopping experience, customers continued to flock to Next’s website amid the latest wave of Covid-19, up more than 30 per cent in its final quarter.
However, the fashion brand struggled with lower stock levels ahead of Christmas, as Next joined a long list of retailers that have been hit by pandemic-induced staff absences and the lorry driver shortage.
“We also experienced some degradation in delivery service levels as a result of labour shortfalls in warehousing and distribution networks,” Next added in its latest trading update.