Next has recorded sales of £4.03 billion for the year to January 2016 – up by £782.2 million on the previous year. The Directory sales division which encompasses catalogue and online channels grew by 7.7 per cent to reach £1.65 billion with smaller format mid-season catalogues generating increased demand. Underlying pre-tax profit came in at £821.3 million, representing a 5 per cent uplift on the previous year.
Lord Wolfson warned that 2016/2017 would be challenging and potentially “the toughest we have faced since 2008”. To counter this the business will be focusing in five key areas: improving its buying and design capabilities and speeding time to market for new trends; upgrading its directory business, kickstarting new online advertising and email campaigns for new customer recruitment and reactivation whilst further developing its website; investing in its online business overseas and international fulfilment capabilities; and opening further new stores in key areas.
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