Jump to content
House Price Crash Forum
rollover

Next sales fall

Recommended Posts

Quote

 

Next has warned that this year will be "challenging" as it reported a fall in sales in the run-up to Christmas. The retailer said full-price sales fell by 0.4% in the 54 days to 24 December, with annual profits now set to be at the low end of expectations. Next said sales in 2017 could be hit as rising inflation erodes earnings growth and squeezes consumer spending.

Next shares fell by 12% at the start of trading in London.BBC

 

I would like to see numbers from other retailers who start Sale weeks before Christmas

Share this post


Link to post
Share on other sites
8 minutes ago, Bugger BTL said:

I have never understood the attraction of the Next, Christmas, or sales. Always looks like one of the circles of Hades, from the reports.

fixed :lol:

Edited by thewig

Share this post


Link to post
Share on other sites

Interesting that normally we get predictions of "Doom and gloom for retail" in the media before Xmas - followed by record sales figures afterwards. 

This year, we didn't seem to get any of the "The sky is falling on high street sales" stories before the holiday but now we are actually seeing some poor figures afterwards.

 

I wonder is Next just an exception or are we going to see this trend repeated?  Could the public's love affair with borrowing huge amounts of cash to spend on tat be coming slowly to an end?

 

 

Share this post


Link to post
Share on other sites

Next has lost the plot, most of the stuff I have bought there in the last two years has had to go back. 

The quality has been abysmal, and the variance in size between two identically spec'ed pairs of jeans was several inches.

I have even had a pair of jeans with two different inside leg measurements, the left leg was at least an inch and a half shorter.

Its just a warehouse for cheaply manufactured Chinese junk (at English prices).

Share this post


Link to post
Share on other sites

It's the NEXT sales that get me. I'm almost certain that 99% of the people who buy thees sale items get less wear out of them than if they had spent the same amount (or less) on a single item of quality clothing at full price from somewhere else that is actually good quality and fit.

Share this post


Link to post
Share on other sites

It's fair to say that Next's Lord Wolfson has been the architect of his own misfortune. Not only is he a prominent and vocal supporter of Brexit, he was also a member of Gidiot's so-called Treasury Team from 2010 onward where he met his 'frightfully well-connected' future wife Eleanor Shawcross, grand-daughter of Nuremberg prosecutor Lord Shawcross, management consultant and co-author of Boris Johnson's winning mayoral election manifesto.

Baron Wolfson of Aspley Guise was quoted in 2015 expressing the belief that a wage of £6.70/hr was sufficient for 'many to live on' while drawing a basic salary less bonuses of £729,000.

 

Share this post


Link to post
Share on other sites
1 hour ago, zugzwang said:

It's fair to say that Next's Lord Wolfson has been the architect of his own misfortune. Not only is he a prominent and vocal supporter of Brexit, he was also a member of Gidiot's so-called Treasury Team from 2010 onward where he met his 'frightfully well-connected' future wife Eleanor Shawcross, grand-daughter of Nuremberg prosecutor Lord Shawcross, management consultant and co-author of Boris Johnson's winning mayoral election manifesto.

Baron Wolfson of Aspley Guise was quoted in 2015 expressing the belief that a wage of £6.70/hr was sufficient for 'many to live on' while drawing a basic salary less bonuses of £729,000.

 

Base salary is a minor detail. The real money for CEO's is the bonus and share options. There was some kerfuffle about executives earning £1m, so they kept base salaries lower than that but increased the base salary multipliers for bonuses and shares.

Typically their share performance is measured against a hand picked group of other companies, not the FTSE as a whole. So including some "dogs" reaps bonuses.

In the 2016 Next Annual report Wolfson's basic £751,000 but total remuneration £4,660,000

Page 60:

http://www.nextplc.co.uk/~/media/Files/N/Next-PLC-V2/documents/reports-and-presentations/2016/NEXT-Annual report Web FINAL.pdf

 

 

 

Share this post


Link to post
Share on other sites

Id say Next are the best ran retailer of the lot.No net debt on the balance sheet (if you count the directory debts from consumers as assets) and churn out free cash flow.Looking at the balance sheet now it looks like at the top of the cycle (last year) free cash flow was 12% and would be around 8% still if profits go down 33% from the top.

Looks to me like they are simply putting out there the obvious.Deflation is over and inflation is going to hit hard this year,and into18.Id expect if Next profits went down by 33% a lot of their competition would go under.

Interesting though they are paying most of the free cash flow out as dividends this year (around 8%) rather than share buy backs.Looks like investors have told them they want cash out of the business.

Share this post


Link to post
Share on other sites
7 minutes ago, durhamborn said:

Id say Next are the best ran retailer of the lot.No net debt on the balance sheet (if you count the directory debts from consumers as assets) and churn out free cash flow.Looking at the balance sheet now it looks like at the top of the cycle (last year) free cash flow was 12% and would be around 8% still if profits go down 33% from the top.

Looks to me like they are simply putting out there the obvious.Deflation is over and inflation is going to hit hard this year,and into18.Id expect if Next profits went down by 33% a lot of their competition would go under.

Interesting though they are paying most of the free cash flow out as dividends this year (around 8%) rather than share buy backs.Looks like investors have told them they want cash out of the business.

Read the annual report from the link I posted. It mentions that In 2014 they made changes to try make sure Executives weren't incentivised to recommend share buybacks.

Share this post


Link to post
Share on other sites
Just now, Democorruptcy said:

Read the annual report from the link I posted. It mentions that In 2014 they made changes to try make sure Executives weren't incentivised to recommend share buybacks.

Interesting,the S+P 500 seems to be driven by share buy backs.Cash returns are always better for shareholders in my book.

Share this post


Link to post
Share on other sites

Well at least they didn't blame the weather.

Await news on Debenhams, Marks & Spencer, Supergrioup, Boohoo, and ASOS.

Share this post


Link to post
Share on other sites

Some news on John Lewis:

John Lewis Partnership

Obviously this business is not listed on the stock market, because it's a partnership. However, it reports on Xmas trading each year via its website - here is this year's report, which covers the 6 weeks to 2 Jan 2016. Key points;

Waitrose LFL sales (excl. fuel) down 1.4%

John Lewis stores LFL sales up 5.1% - clearly an excellent result (assuming margins are similar to last year)

"Click & collect" important & growing

Online is still growing very fast:

Online sales were up 21.4%, representing 40% of total sales

http://www.stockopedia.com/content/small-cap-value-report-4-jan-2017-nxt-jlewis-bm-staf-acrl-spsy-camb-164796/

 

Key is online sales

Share this post


Link to post
Share on other sites

Hmm so Next are threatening us with higher prices. Sorry mate but we don't have to buy your stuff, which is why i think CPI will be contained to a certain extent.

I did buy a lot of clothes/ footwear back in 2012, well probably not by most people's standards, but about £360 all told which has since fallen to about £150pa.. But i have taken to having repairs done on some of the better stuff. In fact my Quicksilver leather jacket (bought for £100 from TK Max in 2012, retail £360) I have had frayed cuffs done (£8), hole repaired (£4) and rezipped (£13).

A bit like an old car, when do you call it quits.:unsure:

Still a great satisfaction not to have to bend over barrel at the behest of the Next Chairman who is telling us  higher prices will come this year. Surely that's up to what the customer is willing to pay.

Edited by crashmonitor

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   34 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.