Next PLC (LSE:NXT) maintained its full-year profit guidance as sales were boosted by the re-opening of stores after the ending of Covid restrictions, although the online arm has suffered as a result.
The FTSE 100 retailer also added that the £220mln surplus cash it forecast in its end of year results would be returned to shareholders, either in the form of a dividend or buyback, or be used to invest in other companies.
Profit before tax guidance for the year was kept unchanged at its recently lowered range of £795-895mln in a trading update for the 13 weeks ending 30 April, where the midpoint of £850mln would represent a 3.3% increase on last year.
Total online sales during the period were up 47% compared to 2019-20, the last reporting before the pandemic although, understandably, that figure is down 11% on last year when stores were closed.
Retail sales, on the other hand, clearly benefited from the re-opening of stores, as sales rocketed 295% from last year, with total full-price sales also up by 22%.
So far, Next has bought back 1.6mln shares for £107.5mln, and spent £20mln on acquiring minority stakes in several businesses, with most of it going into JoJo Maman BeBe, a maternity and clothing wear store.