Bulletin: Online Segment Fuels Next PLC's Full-Price Sales Growth In FYQ3; Base Case Unchanged As Store Sales Decline

LONDON (S&P Global Ratings) Nov. 1, 2018--S&P Global Ratings today said that the 3.1% growth in full-price product sales that Next PLC (BBB/Negative/A-2) reported in Feb. 1-Oct. 27, 2018 (financial year [FY]2019 to date) stemmed mainly from the 14.8% growth in Next's online segment. This offsets the continued decline in physical store sales. The group reiterated its sales and profit guidance for the full FY2019 ending Jan. 31, 2019 with largely flat operating profit of £727 million. This compares with £726 million reported in FY2018, which underpinned S&P Global Ratings-adjusted EBITDA of £949 million. The consistent increase in full-price sales demonstrates Next's robust market position in the U.K. apparel market and improved customer appeal of its products compared with the

...LONDON (S&P Global Ratings) Nov. 1, 2018--S&P Global Ratings today said that the 3.1% growth in full-price product sales that Next PLC (###/Negative/A-2) reported in Feb. 1-Oct. 27, 2018 (financial year [FY]2019 to date) stemmed mainly from the 14.8% growth in Next's online segment. This offsets the continued decline in physical store sales. The group reiterated its sales and profit guidance for the full FY2019 ending Jan. 31, 2019 with largely flat operating profit of ú727 million. This compares with ú726 million reported in FY2018, which underpinned S&P Global Ratings-adjusted EBITDA of ú949 million. The consistent increase in full-price sales demonstrates Next's robust market position in the U.K. apparel market and improved customer appeal of its products compared with the first-half of FY2018 (Feb. 1-Aug. 31, 2017). The lower share of discounted merchandise in the group's earnings will also support profitability, both on the gross- and operating-margin level. At the same time, the growing...

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