Next: shares down after in-line annual results
(CercleFinance.com) - British fashion retailer Next on Thursday delivered profits in line with guidance and maintained its outlook for the year ahead.
Next, which runs 507 shops in the UK and Ireland, said that total group sales were up 2.5% at 4.2 billion pounds for the year ending January 2019, with online full price sales up 14.8%.
Group profit reached 722.9 million pounds, down 0.4% relative to last year, compared with a guidance of 723 million pounds and the consensus of 725 million pounds.
The group said it will propose an ordinary dividend of 110 pence per share, meaning a full-year total of 165 pence, which is 4.4% higher than last year.
For the year ahead, Next expects its profits to fall slightly, based on a 1.7% increase in full price sales over the year.
Shares in Next - which have risen almost 30% year-to-date - were down 1% at 5,132 pence this morning, valuing the business at about 7.1 billion pounds.
"Next currently trades on 2019 PE of 11.6x, which we think is too cheap given the balance of a strong balance sheet and good cash generation with a 6.6% FCF yield," analysts at Liberum said, maintaining a "buy" rating on the stock.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Next, which runs 507 shops in the UK and Ireland, said that total group sales were up 2.5% at 4.2 billion pounds for the year ending January 2019, with online full price sales up 14.8%.
Group profit reached 722.9 million pounds, down 0.4% relative to last year, compared with a guidance of 723 million pounds and the consensus of 725 million pounds.
The group said it will propose an ordinary dividend of 110 pence per share, meaning a full-year total of 165 pence, which is 4.4% higher than last year.
For the year ahead, Next expects its profits to fall slightly, based on a 1.7% increase in full price sales over the year.
Shares in Next - which have risen almost 30% year-to-date - were down 1% at 5,132 pence this morning, valuing the business at about 7.1 billion pounds.
"Next currently trades on 2019 PE of 11.6x, which we think is too cheap given the balance of a strong balance sheet and good cash generation with a 6.6% FCF yield," analysts at Liberum said, maintaining a "buy" rating on the stock.
Copyright (c) 2019 CercleFinance.com. All rights reserved.