Next back in fashion with £290m profit

FASHION giant Next is set to announce that first-half profits and revenues have surpassed pre-pandemic levels, thanks to its booming online division and the reopening of stores.

At its half-year results on Wednesday, Next is expected to say that it made a net profit of around £290million, compared with an £11.5million loss for the same period last year. For the corresponding period in 2016, the high street stalwart made a profit of £266.9million.

According to analysts’ forecasts, Next will report first-half revenues of £2.2billion, an increase of 69 per cent on 2019 levels. Prior to the global coronavirus outbreak, Next notched up half-year revenues of £2.06billion.

Shore Capital’s head of research, Clive Black, said Next has also benefited from a number of its traditional competitors falling by the wayside. “There is every reason to believe Next has made gains, particularly as a lot of capacity has come out of the market with the collapse of people such as Debenhams and Arcadia. Next has been a strong performer.”

This month, Next signed a deal with US fashion giant Gap to keep the brand going in the UK. It formed a joint venture with Gap that will see Next sell the US brand’s clothes in the UK and Ireland in its stores and online.

Earlier this year, Gap announced that it wanted to pull out of the UK, Ireland, France and Italy.

Elsewhere, on Thursday online fashion giant Boohoo will unveil its halfyear results which are expected to show that its US and UK sales have continued to surge.