Wednesday, 30 October 2013

NEXT - 3rd Quarter Trading Update

My recent purchase of NEXT is off to a good start after today’s 3rd quarter trading update.

For the full year to January 2014, the company now estimates that pre-tax profit will grow between 4.6%-9.4%, up from a previous forecast range of 2.2%-8.6% growth.

Online catalogue sales via NEXT Directory increased by 10.7% over the quarter whilst store retail sales remained fairly flat.

Basic EPS growth has been lifted to a range of 15%-21% from the previous estimate of 12%-19% growth. Earnings will be enhanced by share buy-backs. They have so far purchased £295m and say they may purchase up to £50m more shares depending on the prevailing price. A further boost to eps will come from lower corporation tax rates this year.

Mr. Market seems to like the figures and the share price is up over 4% in morning trading @ £54.25.

The company will report on their important Christmas trading figures on 3rd January.

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